This blog was co-authored with Thokola Zungu, Candidate Attorney.
When a company in business rescue is a creditor of another company in business rescue, the right to vote on the business rescue plan for the debtor company vests in the business rescue practitioners of the creditor company and not in its board of directors.
This blog was co-authored with Thokola Zungu, Candidate Attorney.
The Supreme Court of Appeal concluded that a right of action falls within the meaning of ‘movable property’ as defined in the Insolvency Act and vests in the trustees. Thus, by operation of the law, the trustees become the owners/holders of the right of action.
Business rescue offers a very useful alternative to the liquidation or winding-up of a company. During and after the pandemic, many companies may have to consider whether business rescue is an appropriate response to the economic impact that COVID-19 may have had on their business.
Here are 10 things to know when considering business rescue:
One of the functions of the Master of the High Court is to compile a panel of suitable candidates to be appointed as liquidators or trustees of insolvent persons and to remove people who are unsuitable. The adding or exclusion of persons from the panel is administrative action for the purposes of the Promotion of
Where a creditor blocked a bankruptcy plan by buying available claims to get sufficient votes to do so, it was held that this was not a bad faith purchase. A finding of bad faith requires evidence of an ulterior motive. If a creditor seeks to protect its claim to the fullest extent by a strategic
If a company goes into liquidation claims must be lodged and proved within three months as from the conclusion of the second meeting of creditors of the insolvent company.
The case of Wishart v Billiton is a reminder that although the Companies Act 1973 was largely repealed, the provisions relating to winding-up of companies remain
Restructuring of companies in financial distress is on the increase globally. In line with this trend, Mozambican Insolvency Law (Decree law No 1/2013) provides greater protection to debtor companies in financial distress and gives them an opportunity to reorganise and restructure while continuing to operate their businesses.
The law covers three procedures namely judicial reorganisation
A creditor whose loan is subordinated is nonetheless a contingent creditor of the borrower in terms of section 346 of the Companies Act, 1973 (which still applies to the liquidation of companies) and the creditor is accordingly well within its rights to apply for the winding-up of the debtor in default.
The appellant in Absa
There are good reasons for putting a ‘no-cession’ clause in a contract. For one, it is binding on a trustee or liquidator of the insolvent creditor.
Personal rights can be ceded
All personal rights can be freely ceded unless they are of a personal nature where a particular person is expected to perform the obligations