Get Support Services For Best Business Turnaround Advice
As more financially distressed enterprises seek solutions and business turnaround advice in the aftermath of Covid-19, the benefits of company rescue must be evaluated to preserve everyone’s interests.
Cobra Business rescue services help to revive and sustain your declining business model.
What Is The Process Of Business Rescue Services?
- For the duration of the corporate business rescue, the assets of the company are safeguarded from creditors’ claims.
- Employees can continue to work according to the provisions of their employment contracts unless new conditions are agreed upon.
- Employees who owe remuneration become preferred creditors and have a greater priority in claims if the company is liquidated if remuneration is not paid.
- Contracts entered into by the company before the proceedings can be suspended or annulled by the practitioner if the court approves the application. The parties to the terminated or suspended contracts become claimants for any losses incurred as a result of the cancellation or suspension.
- Directors can continue to do their jobs, but only under the supervision of a business rescue specialist.
- The company’s guarantees are no longer enforceable.
- Under the terms of an agreement reached before the corporate rescue procedure begins, the firm can take possession of another party’s property.
- If the disposal has been approved as part of the corporate rescue plan, the company can sell the stated property in the ordinary course of business for an acceptable price.
- When a corporation faces a temporary cash-flow difficulty, it is a viable option to liquidation.
- The rescue plan must be approved by a majority of creditor voting interests (75 percent), giving creditors a reasonable stake in the plan to ensure that their rights are protected.
- The rescue plan must be approved by at least half of the independent creditors’ voting interests.
Who Can Apply For Cobra Business Rescue Services?
Any person who has been harmed or the board of directors can apply. A creditor, employee, shareholder, or employee representative, such as a registered and recognised trade union, is an impacted person.
It can thus be a voluntary process or one for which a court order has been issued, making it a mandatory rescue.
If your company meets the characteristics, seek legal advice to see if it qualifies for the benefits of corporate business turnaround advice, business turnaround strategies and rescue services. Our Cobra Business support services offer the best solutions to help your struggling business.