South Africa: Insolvency/Bankruptcy

The Western Cape High Court has delivered a significant ruling on whether contingent and prospective creditors have standing to initiate business rescue proceedings under Chapter 6 of the Companies Act. The judgment settles on the grammatical meaning of "creditor" and clarifies the rights of sureties and subordinated debt holders in business rescue applications. This decision has important implications for lenders and creditors seeking to place debtors into business rescue proceedings.

When does an unpaid invoice signal more than a contractual dispute? This analysis examines the critical distinction between debtors who will not pay and those who cannot pay, exploring how creditors can identify financial distress patterns and select appropriate recovery strategies before their options narrow. Understanding these warning signs may determine whether a creditor pursues ordinary litigation, liquidation proceedings, or business rescue.

South African courts may allow multiple companies to be liquidated in one application, but separate grounds and evidence must be established for each company.

In South Africa, the legal system is designed to uphold justice, provide recourse for wrongs, and ensure fairness for all parties.

Foreclosure on a primary residence is one of the most emotionally and economically devastating events that a debtor can face.

The provisions governing the winding-up of co-operatives are reflected in the Co-operatives Act No. 14 of 2005 and its regulations.

If you are approached by a liquidator wishing to claim back money paid to you by a provisionally liquidated business, what are your options?

The year 2020 was not business as usual as the outbreak of the new COVID-19 virus disrupted and tested the resilience of global economies, health systems, supply chains, industries and businesses.

The South African Labour Court, in Telkom SA Ltd v Commission for Conciliation, Mediation & Arbitration & Others, had to determine whether a failure by Telkom to appoint an employee into a more senior position ...