Introduced in 2011, business rescue has become a commonplace term in SA’s corporate landscape. But as familiar as it might be, perception of its success is poor and, increasingly, business rescue proceedings appear to be inordinately long and harrowing.
It’s an opportunity for a business to step back, rethink, restructure and hopefully secure a better return for the creditors and especially employees. Top of mind are those businesses linked to the Gupta family which were placed in business rescue in February 2018 when they became unable to transact. Because it was only the lack of banking facilities which caused their distress in the first place, the rescue practitioners believed the companies could be saved simply by selling the assets to new owners who have not fallen out of favour with financial institutions.
Vantage Goldfields SA was placed under business rescue three years ago, just months after a tragic accident at its Lily mine near Barberton where three miners were trapped underground after a ground collapse. The business remains in rescue and, with a dispute over funding with the prospective new owner tied up in the courts, the rescue practitioners are considering liquidation.The drawn-out nature of business rescue would appear to be increasingly normal.
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