Financial distress is not the end of your business.
Summit Restructuring guides South African companies through business rescue under Chapter 6 of the Companies Act, 71 of 2008, so directors, employees and creditors have a real chance at recovery.
What we do
Practical help for directors, owners, employees and creditors when a company is financially distressed, meaning it is unlikely to pay its debts as they fall due within the next six months.
Business rescue
We guide the board through a section 129 resolution and the appointment of a business rescue practitioner, with the section 133 moratorium protecting the company while a plan is built.
Rescue plan development
We assess the numbers and the options, then prepare a business rescue plan that affected persons can vote on with confidence.
Creditor negotiation
We manage conversations with banks, suppliers, landlords, SARS and other creditors.
Post-commencement finance
We help source and structure funding under section 135 so the company can keep trading during rescue.
Director guidance
Clear advice on your duties as a director, and your exposure for reckless trading, when the company is financially distressed.
Employee and stakeholder communication
We keep employees, unions and affected persons informed, since their rights and consultation are central to any rescue.
The route to recovery
Every rescue is different, but the process follows the same four stages set out in the Companies Act.
- Base campBefore filing
Assess and resolve
We review your finances and confirm the company is financially distressed with a reasonable prospect of rescue. The board then passes a section 129 resolution.
- AscentFirst 10 business days
Notify, appoint and protect
The resolution is filed with the CIPC and creditors and employees are notified. Once the practitioner is appointed, the moratorium applies and the first creditors meeting is held.
- RidgeWithin 25 business days
Publish the rescue plan
The practitioner publishes the plan, including the expected return to creditors compared with liquidation, and affected persons vote on it.
- SummitOngoing
Implement and exit
We carry out the adopted plan, report on progress and file notice with the CIPC when rescue ends.
Who we help
Rescue works best when it starts early. If any of these sound familiar, talk to us now.
- Directors facing cash shortfalls, unpaid creditors or SARS arrears
- Owners of viable businesses weighed down by debt
- Companies facing liquidation applications or creditor litigation
- Banks and creditors seeking a better recovery than liquidation
- Employees, unions and suppliers with a stake in the outcome
Speak to us in confidence
Tell us briefly what is happening. A senior practitioner will respond within one business day.
EmailSummit@summitrestructuring.co.za
Phone082 611 4844
HoursMonday to Friday, 08:00 to 17:00 SAST