Business rescue explained
Khathutshelo ‘K2’ Mapasa knows a thing or two about business rescue – the group CEO of Basil Read has been working to salvage the construction firm since it was placed in SA’s version of Chapter 11 bankruptcy 23 months ago
Khathutshelo "K2" Mapasa knows a thing or two about business rescue — the group CEO of Basil Read has been working to salvage the construction firm since it was placed in SA’s version of Chapter 11 bankruptcy 23 months ago. Speaking to the FM, he argues that, as in the case of SAA, many misunderstand what business rescue entails.
KM: First, I think the words "business rescue" are a misnomer. The term raises certain expectations and you probably think the business is going to be rescued. But if you read the Companies Act, there are two outcomes considered a success: either you restructure the company in such a way that it can trade again, or you wind down that business in such a way that you get a better dividend for the creditor than if you had gone into liquidation immediately...
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