Purpose of business rescue plan
Answers
Business rescue aims to restructure the affairs in such a way that it allows the company to continue its existence in the future or if it results in a better return to creditors of the company than would ordinarily result from the liquidation of the company.
And
Business rescue is a procedure aimed to facilitate the rehabilitation of a financially distressed company. The company is placed under the temporary supervision of a business rescue practitioner who manages the affairs of the company. There is a moratorium on the rights of all claimants against the company or in respect of all its property. A business rescue plan is developed to rescue the company by restructuring its affairs. This may include a restructure of the business, its property, debt, other affairs, liabilities and equity.