Insolvency

Leahy Attorneys is here to guide and assist you when your company is insolvent or under financial distress. In terms of the New Companies Act (Act 71 of 2008) companies can now not only opt for the winding up of a business but also have the chance to rearrange their business by way of a business rescue application.

Both of these processes have far-reaching implications for creditors, financial institutions, shareholders and employees of the businesses and companies.

Business rescue is a fairly new process which was introduced in the New Companies Act. Speed and efficiency are the key concepts at the core of this process. A statutory moratorium is placed on enforcement actions against the entity (in this case a company) by its creditors whilst an appointed business rescue practitioner and the company’s board jointly develop a business rescue plan aimed at properly restructuring the entity’s financial affairs for the benefit of all stakeholders.

Should the company not be capable of being rescued, the focus is shifted to reducing expected losses of all stakeholders, whilst avoiding personal liability of directors and officers of the entity.

Our Insolvency, Business Rescue and Restructuring team is well equipped to guide and assist you.