The Importance of Pre-Assessment in Business Rescue
In terms of the Companies Act no 71 of 2008, the directors of the company must ascertain whether the business is financially distressed and determine if a business rescue has a reasonable prospect of success.
To meet the criteria for financially distressed it must be reasonably unlikely that the business will be able to pay all of its debt within the ensuing 6 months.
Why perform a Pre-Assessment?
- To determine whether A Business Rescue is a viable option and presents a reasonable prospect of rehabilitation.
- To present an objective and independent view of the business plan prior to the filing for Business Rescue.
- It will save the company unnecessary costs associated with a failed Business Rescue.
Our suitable and qualified professionals who understands the Business Rescue process and nuances from a practical point of view will assist and guide you to arrive at an opinion as to whether the business has a reasonable prospect of being rescued. Let us assist the Board of Directors to perform the pre-assessment.