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Filter: Business Rescue
Business rescue proceedings and sureties

12 January 2015

Your family company bought a new commercial property with a view to expanding the business. The bank insisted on the... family shareholders providing personal sureties for the financing afforded to the business to buy the property. Without hesitation, the sureties were provided as business was looking up and the property was needed. Then the recession hit, and to avoid foreclosure by the bank your company was placed under business rescue. But now the bank is coming after you as surety despite the company being placed under business rescue. Can they do this? 

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257
Article
Financial distress: your obligation to inform the public

22 November 2013

In the last few years, many business owners have had to make difficult decisions to restructure their business in order... to survive the economic recession. Family businesses were sold, assets made to money and unfortunate events even led to liquidation of businesses. Owners, understandably, often don’t keep perspective of their financial struggles and will do anything to salvage the business without taking formal steps or letting anyone know of its dire financial position. The following questions thus arise: At what point must you take formal steps to notify persons about your financial situation? Who needs to know? How much do they need to know?

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346
Article
Is business rescue the lifebuoy your business needs?

25 October 2012

Peter has recently inherited the family business from his father, becoming the fourth generation of Morgans in charge of the... established Morgans Handcrafted Furniture company. Peter’s father, having passed away recently, left him in charge of the running of the sizable production warehouse and having learnt the trade under the guidance of his father, Peter has acquired all the skill needed to continue the established tradition of excellence. A few years ago, Peter’s father brought in investors as shareholders into the family company to provide much needed capital to finance the purchase of the current warehouse. Concerned about the death of Peter’s father, these investors are now clamouring for returns on their investment. With a good order book, Peter considers buying them out, yet when he start delving into the financials he realises that many obligations, debts, suppliers and other creditors have not been properly paid by his father and many outstanding accounts have not been collected. In his later years, it becomes apparent that Peter’s father has let the financials slip and suddenly what Peter thought was a healthy and vibrant business, appears to be sinking in a sea of debt. But what to do? Must the family business be sold, assets be made to money, or even be declared insolvent?

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275
Article