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Wanted urgently: money & business rescue experts as SA businesses face collapse

12 May 2020 7:11 PM
Tags:
Lockdown
COVID-19
lockdown and economy
The lockdown is causing a financial bloodbath as many businesses collapse and workers are out of jobs.

Eric Levenstein is joint head of Werksmans Insolvency, Business Rescue & Restructuring practice.

He is concerned that there are not enough business rescue practitioners in South Africa for all the companies filing for rescue in the wake of Covid-19.

We have a schedule of business rescue companies published by the companies commission. They say there are about 460 licenced practitioners but only 97 are registered as senior practitioners with more than ten years experience. If you look at the uptick in business rescue - and we're not expecting it to get much quieter - we are concerned that there are not enough practitioners to take on the bigger filings that are probably going to come our way in the months ahead.

Dr Eric Levenstein - Werksmans Attorneys

The majority of business rescue practitioners are in fact chartered accountants or instruction specialists and we do have lawyers as well... It's something that's quite difficult. The objective of course is to publish a plan where creditors would look at and say we'll vote in favour of the plan and we won't push the company to liquidation.

Dr Eric Levenstein - Werksmans Attorneys

The skills set of the practitioner is critical. The rescues are complex...and they take time and there are a lot of challenges. It's not something that anyone can take on.

Dr Eric Levenstein - Werksmans Attorneys
Picture: 123rf.com

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12 May 2020 7:11 PM
Tags:
Lockdown
COVID-19
lockdown and economy

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