Oakbay loses bid to remove business rescue practitioners

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The judgment found the allegations of the practitioners lacking independence to be unfounded and determined there was no conflict

The Gupta family’s Oakbay Investments has lost its bid to have the business rescue practitioners removed from Tegeta Exploration and Resources.

Business rescue, as provided for by the Companies Act, aims to rehabilitate businesses that are in financial distress. The company argued that, because the rescue practitioners of Tegeta are also involved in the rescues of some other Gupta-linked companies, they were unable to act in the best interest of these companies, particularly when it came to collecting on inter-company loans.

 

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