IN CERTAIN INSTANCES, A TURNAROUND, RECOVERY OR SALE OF A BUSINESS IS NOT THE OPTIMAL SOLUTION FOR STAKEHOLDERS
In terms of Chapter 6 of the new Companies Act, Business Rescue is a process to rehabilitate and rescue a financially distressed company.
In such instances, one of the possible solutions is a wind-down of the business, either as part of an informal process, or a formal process
The wind-down process aims to wind-down the business as effectively as possible, while maximising value for stakeholders.
The process involves a combination of various procedures, dependent on the specific matter, such as:
A Mergers & Acquisition process for the sale of the business’ assets.
The closure and exit of non-saleable, non-performing divisions or assets.
Minimisation of job losses.