SAA is in ‘business rescue’. What does that mean?

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Business | SAA has been placed into business rescue - What does that mean? Joe Bavier explains

South Africa’s business rescue process, which will shield SAA from the demands of its creditors while an independent adviser takes over, borrows from US, UK, Canadian and Australian law.

The business rescue practitioner must quickly assess the company's operations and, within 10 business days, convene creditors and employees to give a view on whether there is a reasonable chance a rescue plan can succeed. The business rescue plan must be voted on and adopted by the affected parties, which include creditors but also employees.If the business rescue practitioner finds there is no reasonable chance a rescue plan can succeed, he files a petition for liquidation.

 

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