Knowledge Centre

Rescue distressed companies and rebuild them into sustainable businesses.

Business Rescue & Turnaround

1. What You Need to Know 

Business rescue is a legal process under the Companies Act for financially distressed companies. 
CBAPs can support licensed practitioners, or provide turnaround advice outside formal rescue. They analyse financial distress, prepare restructuring plans, and manage creditor negotiations. 

2. Why It Matters to You 

Saves companies from liquidation. 
Protects jobs and livelihoods. 
Gives creditors a better return than liquidation. 
Provides a roadmap for recovery and growth. 

3. Frameworks, Standards, or References 

  • Frameworks: Turnaround strategy models, Cash-flow restructuring. 

  • Standards & compliance: Companies Act Chapter 6 (Business Rescue), Solvency & Liquidity Tests. 

  • References: CIBA specialist licence for Business Rescue. 

  • What accountants do: 

  • Assess financial distress. 

  • Draft turnaround strategies. 

  • Prepare statutory reports for creditors. 

  • Monitor performance during recovery. 

4. How to Apply

  1. Engage a CBA if your company is facing financial distress. 

  2. Perform solvency and liquidity tests. 

  3. Draft a turnaround plan with creditor consultation. 

  4. File for Business Rescue (if required by law). 

  5. Monitor implementation and report progress. 

5. Common Mistakes to Avoid 

  • Waiting too long → act before insolvency. 

  • Poor communication with creditors. 

  • Unrealistic recovery projections. 

  • Ignoring compliance with statutory timelines.