Business rescue gives lifeline for struggling businesses

Prolonged economic challenges continue to put pressure on South African businesses, making proactive financial management even more critical.

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As an organisation that has assisted with asset disposal in hundreds of Business Rescue and Liquidation matters, Park Village Auctions (PVA) suggests that financially distressed companies consider business rescue as an alternative to liquidation.

Business rescue is a legal process governed by Chapter 6 of the Companies Act and is designed to rehabilitate a company.

Failing this, the process most often secures a better outcome for all stakeholders compared with immediate liquidation.

PVA director Roy Lazarus says: "Business rescue provides a crucial moratorium on legal action, giving a qualified practitioner the time to restructure the business.