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COVID-19 Business Rescue: Does your business need time to plan and restructure?

In these uncertain times you, as a stressed businessperson, may need time to draw a breath and understand the challenges your business is faced with, take advice and plan. This may be difficult whilst having to concurrently meet all your business obligations and manage the expectations of your creditors, employees, and other parties.

Fortunately, Chapter 6 of the Companies Act 71 of 2008 provides such a mechanism with its Business Rescue provisions. By passing and filing a Board Resolution, your company (or close corporation) may immediately be placed in business rescue with the appointment of your nominated business rescue practitioner. During this period, consultations with all affected parties will take place and a new business plan formulated.

The aim: to rescue your business through a methodical and consultative restructuring process. Allowing your business to adapt and re-format to better weather the COVID 19 storm.

We at Tomlinson Mnguni James have an experienced team of business, labour, and corporate lawyers to assist you throughout the above process. We also have partnered with a group of chartered accountants to provide financial advice and professional support throughout the restructuring process.

Please contact Neil Riekert or Arno Goebel to arrange a no-strings discussion about this process and the way forward.

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