Preserving company value, protecting jobs, and maximising returns for stakeholders — through expert legal intervention.
Business rescue is a legal process under the Companies Act 71 of 2008 designed to rehabilitate financially distressed companies and avoid liquidation where there is a reasonable prospect of recovery. It involves placing the company under supervision and restructuring its affairs to either restore solvency or achieve a better return for creditors than liquidation would provide.
Unlike liquidation, business rescue focuses on saving the company as a going concern — preserving business value, protecting employee livelihoods, and giving creditors the best possible return on their investment.
Early intervention is critical. Delays in initiating business rescue often significantly reduce the chances of a successful outcome. The earlier you engage, the more options are available.
A licensed professional appointed to manage the company and develop a restructuring plan.
Temporary protection from creditor legal action — giving the company space and time to restructure.
A business rescue plan is developed, approved by affected parties, and implemented to restore viability.
Companies should consider business rescue at the first sign of financial distress — not when it's already too late. The Companies Act imposes obligations on directors to act when they reasonably believe the company is financially distressed.
Early signs of financial distress or declining revenue
Cash flow challenges and inability to meet obligations
Increasing pressure from creditors or demand letters
Company unlikely to pay debts within the next 6 months
Director or board considering options to avoid liquidation
How do the two options compare?
| Factor | Rescue | Liquidation |
|---|---|---|
| Company continues? | ✓ Yes | ✗ No |
| Jobs preserved? | ✓ Often | ✗ Typically not |
| Creditor returns | Higher potential | Often lower |
| Legal protection | ✓ Moratorium | Court process |
| Director control | Some retained | ✗ Lost |
We provide end-to-end support — from initial assessment through to plan implementation — for companies, directors, and creditors.
Assessment of whether business rescue is the appropriate route — including viability analysis, timing recommendations, and alternative options.
Legal guidance and support for Business Rescue Practitioners — including filing requirements, stakeholder communication, and plan development.
Skilled negotiation on behalf of creditors or the company — seeking the best possible outcome for all affected parties.
Development and implementation of commercially viable restructuring plans — including operational, financial, and legal restructuring measures.
When recovery is possible, business rescue preserves value and outcomes that liquidation simply cannot.
A going concern is worth significantly more than its asset value in liquidation. Business rescue preserves brand, customer relationships, and operational value.
Employees retain their positions and livelihoods during business rescue — a significant benefit over liquidation where employment is typically terminated.
Business rescue consistently achieves better returns for creditors compared to liquidation — making it the preferred option wherever recovery is viable.