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Nastascha Harduth joined Jeremy Maggs on Moneyweb to the difference between business rescue and liquidation

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Nastascha Harduth joined Jeremy Maggs on Moneyweb to the difference between business rescue and liquidation

In a trifactor of pertinent information sharing, Nastascha Harduth, Director and Head of our Business Rescue & Insolvency sector joined Jeremy Maggs on Moneyweb.

17 Jul 2024 10:34 Minutes Radio interview
Nastascha Harduth joined Jeremy Maggs on Moneyweb to the difference between business rescue and liquidation

Nastascha Harduth joined Jeremy Maggs on Moneyweb to the difference between business rescue and liquidation

Podcast

Nastascha Harduth joined Jeremy Maggs on Moneyweb to the difference between business rescue and liquidation

Podcast

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During these information sharing interviews, CDH experts explain that business rescue, which is governed by Chapter 6 of the Companies Act, is designed to help businesses in financial distress. This process involves appointing a business rescue practitioner with the priority of restoring the business from financial distress to profitability, which is obviously in the best interests of all stakeholders in that business. In contrast, liquidation usually leads to the termination of a company with the aim of providing the best possible return for creditors. A liquidator is appointed to wind down the business in an orderly manner by collecting debts, selling assets, and paying creditors according to their priority.

If there is a reasonable chance of restoring the business to financial health, business rescue is therefore preferable.

One of the biggest downfalls of business rescue is that businesses often delay seeking distress advice until it's too late. Management should engage their trusted advisors – financial and legal – and business rescue practitioners at the first sign of distress. Early intervention is crucial for effective assessment and rescue planning.

The information and material published on this website is provided for general purposes only and does not constitute legal advice. We make every effort to ensure that the content is updated regularly and to offer the most current and accurate information. Please consult one of our lawyers on any specific legal problem or matter. We accept no responsibility for any loss or damage, whether direct or consequential, which may arise from reliance on the information contained in these pages. Please refer to our full terms and conditions. Copyright © 2024 Cliffe Dekker Hofmeyr. All rights reserved. For permission to reproduce an article or publication, please contact us cliffedekkerhofmeyr@cdhlegal.com.

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