SPECIALISED funds buying distressed businesses at a discount are likely to start emerging in SA in the next year or two, following the example of other countries, says attorneys Werksmans director Eric Levenstein.Many of these businesses can be turned around and sold at a profit.Business rescue was introduced in SA five years ago to replace judicial management and facilitate rehabilitation of companies with reasonable prospects of being saved as an alternative to liquidation.Recent high-profile examples of business-rescue successes include Pearl Valley Golf Estate, gold miner SouthGold and the Moyo restaurant chain.Levenstein said at a client seminar on business rescue and restructuring last week that lessons learned since business rescue was introduced would justify amendments to the legislation. These included the need for pre-assessment by a business-rescue practitioner, establishing a formal dispute-resolution methodology and providing training for practitioners.Ivan Uttley, man...
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