Liquidation and Sequestration
Commercial realities dictate that companies and individuals which are factually insolvent or unable to pay their debts as they become due must consider the prospects of continued litigation and liquidation, be it voluntary or compulsory.
Our advice is focused on protecting the best interests of our clients as creditors, lenders, directors or shareholders in the insolvency process.
A company that is ‘financially distressed’ for the purposes of Section 128 of the Companies Act 71 of 2008, must take action and should consider the possibility of Business Rescue. The purpose of this process is to restructure and rearrange the affairs of a company to maximise the likelihood of the company continuing in existence on a solvent basis or, if this is not possible, to bring about a better return for the company’s creditors and / or shareholders in the event of insolvency.
We have experience in a wide range of insolvency related issues and associated litigation, including:
- Applications for liquidation or sequestration
- Advice to clients when financially distressed, commercially insolvent and in liquidation
- Advice and management of claims in the liquidation process
- Interrogations of parties in insolvency proceedings
- Commencement of Business Rescue Proceedings (by way of resolution or application)
- Advice on Business Rescue proceedings and consequences
- Advice and preparation for the consequences of Business Rescue Proceedings