If applied correctly, with the respect and attention it deserves, business rescue can be highly effective in the survival of an ailing business. Hobbs Sinclair have, for some 20 years, been involved in business turnarounds, but since the promulgation of the New Companies Act in May 2011 and the introduction of business rescue, this aspect of our work has become a major focus. We offer methodical business rescue solutions and will only take on those projects we feel have a strong prospect of success. Our team has successfully navigated and facilitated the turnaround of companies in financial distress through recapitalizing and restructuring via the business rescue process.

Senior Business Rescue Practitioner Neill Hobbs heads up our highly respected Business Rescue division.

The board of directors passing a resolution to begin proceedings if the board has reasonable grounds to believe that the company is financially distressed and there appears to be a reasonable prospect of rescuing the company. The company therefore goes into business rescue voluntarily.

An affected person applies to court at any time for an order placing the company under supervision and commencing business rescue proceedings. The company could therefore be forced into business rescue through a court application.

The company will be required to carry the cost of the business rescue under both the options above. Therefore, even if the company did not select to be placed under business rescue, they are still liable for the costs.