We are unpacking the corporate restructuring options, which are business rescue vs liquidation. What is the best option for a company in distress?
When your registered company is in financial difficulty, whether due to load-shedding woes, mismanaged funds, outstanding debts or even just due to a tough economy, there are two legal options available to either wind up your commercial affairs in liquidation, or try to rise back from the ashes with business rescue proceedings.
To put it plainly, a successful business rescue aims to restore the business to trading successfully, whilst liquidation results in the managed demise of the business.
My guest today is Peter Veldhuizen, MD of Gillan & Veldhuizen Inc, who will take us through the two options available to companies that are commercially insolvent.