The litigation conducted by the department is diverse, and incorporates insolvency litigation and financial recoveries specialising in property foreclosures. We make use of the latest computerised operating and accounting procedures to enhance the effectiveness of the recovery procedure.
The recent changes in the new Companies Act now also allows for Business Rescue proceedings to take place. Business Rescue facilitates the rehabilitation of a company that is financially distressed by providing for (1) temporary supervision of the company, and of the management of its affairs, business and property; (2) a temporary moratorium on the rights of claimants against the company or in respect of property; and (3) the development and approval of a plan to either rescue the company and return it to solvency by restructuring its liabilities and equity or, if that is not possible, to achieve a better return for the company’s creditors than the payment they would have received if the company had been liquidated.
We have been involved with assisting clients in placing their companies under Business Rescue and opposing Business Rescue proceedings. This area is still developing and we continue to remain updated with regard to recent court decisions.