ANALYSIS: Banks get an early Christmas gift in ruling on business rescue
Banks and other lenders must be breathing a sigh of relief, and celebrating an early "Christmas gift" from the Supreme Court of Appeal. The gift was delivered in Diener NO v Minister of Justice (926/2016) [2017] ZASCA 180 (1 December 2017). Two of the questions before the court were: whether or not a business rescue practitioner enjoys "super-preference" over all secured and unsecured creditors in respect of the practitioner’s fees and expenses in the event that a company, that was in business rescue, goes into liquidation; and whether or not the practitioner must prove a claim in the estate of the company which has subsequently gone into liquidation. The company in question was in business rescue before being placed in liquidation. When the liquidation order was granted, the practitioner’s fees and expenses were unpaid by the company and owing to the practitioner. The practitioner argued that he enjoyed "super-preference" over secured and unsecured creditors in respect of the payme...
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