The fastest way to grow your business with the leader in Business Management



Business Rescue


In todays economic climate a number of businesses are becoming financially distressed (cannot meet the ongoing monthly financial obligations). The Companies Act makes provision for these companies to be rehabilitated and return to a sound financial footing once again. Our approach to business rescue is a multi-disciplinary approach and harnesses the various disciplines (financial, legal and business management) to provide for a sustainable turnaround strategy. We work with our business rescue clients to achieve the desired result.

Most businesses realise that they are in trouble when their disposable income decreases and their debt starts to increase and they find it difficult to sustain their creditor payments. This is normally a sign that the company is under financial distress.

The benefit of business rescue is that it offers protection to the business and offers a moratorium against any creditor action.

Whether it is a business rescue or a turnaround solution our approach is the same.

The first phase in the process is the analysis of the business. This analysis covers a full financial analysis, the systems, processes and people. The analysis phase enables Rens to identify the reasons for the financial distress, what interventions are required and to determine whether or not the business can be “saved”.

The outcome of the analysis phase is two fold


  • The development of a turnaround strategy.
  • The determination whether or not the business is a candidate for business rescue, and if “yes” to proceed with the legal process of placing the business under business rescue.

The analysis phase of the business may determine that the company may not require business rescue but a turnaround strategy. This will be agreed in consultation with the directors of the company.


Business Rescue as per Chapter 6 of the Companies Act


  • A company must be financially distressed which means that “it appears to be reasonably unlikely that the company will be able to pay all its debts as they fall due and payable within the immediate ensuing six months.
  • The purpose of Business Rescue is to facilitate the rehabilitation of a company that is financially distressed.
  • Business Rescue provides for the supervision of the company and management of its affairs.
  • Business Rescue is a temporary moratorium on the rights of claimants against the company.
  • Business Rescue provides the opportunity to develop and implement a business rescue plan by restructuring the affairs of the company.
  • If the business rescue cannot provide a means to turn the business around – liquidation.

The Business Rescue Process


  • The board/ members of the company must resolve to place the business under business rescue. Any affected party may also make application to place the company under business rescue. An affected party would also include; creditors, employees or any other stakeholder that is directly affected by the company.
  • 5 days after resolution the application to go under business rescue must be filed with the CIPC.
  • Alongside the application for business rescue, the application for the appointment of a business rescue practitioner must be made.
  • 10 days after acceptance of the application to go under business rescue, notification to hold the 1st creditors meetings must be issued.
  • Notice to all affected parties and confirmation date/ time/ venue of 1st creditors meeting must be issued.
  • A BRP (Business Rrescue Plan) must be completed in 25 days.
  • A 2nd creditors meeting is convened where the creditors have the opportunity to vote on the business rescue plan.
  • If the business rescue plan is rejected, BRP (Business Rescue Practitioner) has 10 days to modify / revise the business rescue plan.
  • In the event that the revised business plan is rejected by the creditors, application may be made to the courts for the approval of the business rescue plan.
  • On approval of the business rescue plan, the business rescue team will then implement the plan.

    For more info visit our Business Rescue website: Click Here