Can you claim against a surety if the debtor is in business rescue?

By Riza Moosa on July 25, 2014 Posted in Banking

Every suretyship securing a company’s debts should specifically preserve the creditor’s rights to recover from the surety despite discharge of the principal debt in a business rescue plan. And every business rescue plan should, if possible, contain a provision preserving rights against sureties. If a debtor company is in business rescue, its creditors may call on … Continue reading

Possible business rescue orders

By Riza Moosa on January 28, 2014 Posted in Banking

A court can issue an order placing a company in business rescue if it is shown that the company has reasonable prospects of being restored to a continued solvent existence or of achieving a better return for creditors and shareholders than would result from immediate liquidation. The supreme court of appeal made this finding in Oakdene … Continue reading

What must be proved in a business rescue application

By Riza Moosa on January 15, 2014 Posted in Banking

The supreme court of appeal in Oakdene Square Properties v Farm Bothasfontein (Kyalami) gave some useful guidance about what should be in a business rescue application: A party seeking business rescue must show that there is a reasonable prospect of the company being restored to existence on a solvent basis or being restructured to give … Continue reading