In an April 2025 judgment, the High Court concluded that the defendant’s liability as a surety was not discharged by the release of the principal debtor under a business rescue plan (BR Plan). The BR Plan and the deed of suretyship were both clearly drafted to preserve the creditor’s right to claim from the surety.
creditor’s rights
No release for sureties for alleged prejudicial conduct by creditor

By Patrick Bracher (ZA) on
On 14 February 2025 a high court on appeal found that the defendant sureties had not established any basis for their release from their liabilities because of alleged prejudicial conduct by the principal creditor, a lending bank. The turnaround specialist who was appointed to assist the principal debtor was not the agent of the principal…