Insolvency, Business Rescue & Restructuring (Turnaround)
Providing expert guidance to help businesses navigate financial distress and achieve sustainable recovery.
About our Insolvency, Business Rescue & Restructuring
Ebersöhns has built a strong reputation for partnering with South African and international clients on insolvency, business rescue and corporate restructuring matters, enabling them to act swiftly, decisively and with confidence, secure in the knowledge that they have a strategic advantage in achieving the best possible outcomes. We provide clear, legally grounded and commercially practical advice in circumstances that are often time-sensitive and high-risk.
We work collaboratively with our clients, including creditors, financial advisors, liquidators, business rescue practitioners, and other professionals to deliver comprehensive support.
Ebersöhns has established a solid reputation for partnering with both South African and international clients on matters relating to insolvency, business rescue, and corporate restructuring. By equipping clients to act swiftly and decisively, Ebersöhns ensures they can proceed with confidence, knowing they have a strategic advantage in pursuing optimal outcomes. Our advice is clear, legally sound, and commercially practical, particularly in situations that are time-sensitive and high-risk. We collaborate closely with our clients, including creditors, financial advisors, liquidators, business rescue practitioners, and other professionals to provide comprehensive support throughout the process.
Enquire Today
Enquire today about our Insolvency, Business Rescue & Restructuring
Insolvency
Insolvency arises where an individual or entity is unable to meet its financial obligations, or where liabilities exceed assets and there is no reasonable prospect of recovery.
South African insolvency law provides a structured framework for the winding-up of affairs, the realisation of assets and the distribution to creditors in accordance with statutory priorities.
In these circumstances, careful management of the insolvency process is essential to protect value, manage risk and ensure compliance with the Insolvency Act and related legislation.
What Makes Us Different
Our team of insolvency attorneys approach each matter with a combination of technical legal expertise and commercial awareness.
We do not limit our role to the procedural aspects of liquidation or sequestration. We work closely with our clients to understand the broader context, identify risks at an early stage and implement a clear strategy aligned with their objectives.
Our approach is characterised by:
- Clear and decisive advice in financially distressed situations
- Early identification of legal and commercial risk
- Protection and enforcement of our client’s position
- Practical outcomes within the framework of South African insolvency law
We are frequently engaged in complex matters requiring coordination between legal, financial and operational considerations.
Our Insolvency Services
Advising on voluntary and compulsory liquidation of companies
Instituting and opposing liquidation applications in the High Court
Advising on the sequestration of individuals and trusts
Assisting with voluntary surrender and compulsory sequestration proceedings
Advising creditors on lodging and proving claims in insolvent estates
Protecting secured and unsecured creditor interests
Challenging competing or disputed creditor claims
Advising on recovery strategies and prospects of dividend
Investigating impeachable transactions and voidable dispositions
Recovering assets improperly disposed of prior to insolvency
Participating in insolvency enquiries and examinations
Advising on potential claims against directors and third parties
Representing clients in insolvency-related litigation
Business Rescue
Business rescue is a statutory mechanism in terms of the Companies Act that enables financially distressed companies to restructure their affairs under supervision.
The business rescue process provides for a temporary moratorium on creditor action and the development of a rescue plan aimed at rehabilitating the company or achieving a better return for creditors than liquidation.
Business rescue plays a central role in South African corporate restructuring and requires careful legal and commercial consideration.
What Makes Us Different
As experienced business rescue attorneys, we approach business rescue as a strategic intervention rather than a purely procedural process.
We provide objective advice on whether business rescue is appropriate and guide clients through each stage of the process with clarity and precision.
We act for directors, companies, creditors and stakeholders, and our approach is focused on:
- Assessing the viability of business rescue at an early stage
- Structuring legally sound and commercially workable rescue strategies
- Managing competing stakeholder interests
- Ensuring compliance with the Companies Act and applicable regulations
Our role is to ensure that business rescue is used effectively as a tool to preserve value and manage financial distress.
Business Rescue Services
Advising on whether a company is financially distressed as defined in the Companies Act
Assessing whether business rescue is preferable to liquidation
Advising directors on their duties and potential liability
Assisting with the commencement of business rescue proceedings
Preparing and advising on board resolutions
Ensuring compliance with statutory requirements
Advising on the appointment of business rescue practitioners
Advising on the development and structure of business rescue plans
Negotiating with creditors and stakeholders
Advising on creditor voting and approval of rescue plans
Representing stakeholders in business rescue proceedings
Challenging or supporting business rescue plans where appropriate
Advising on the implementation of rescue plans
Insolvency, Business Rescue & Restructuring Law Guidance
Contact us today to secure the guidance you need to move forward with confidence.
Corporate Restructuring & Turnaround
Effective business restructuring requires a deep understanding of the commercial realities that drive sustainable recovery. At Ebersöhns, our restructuring and turnaround solutions are led by attorneys who combine strong legal acumen with practical business insight, enabling us to craft strategies that are both legally sound and commercially viable.
Our primary objective is to stabilise and reposition businesses early, avoiding the need for formal business rescue or liquidation proceedings wherever possible. We achieve this through carefully designed turnaround strategies that focus on proactive, strategic engagement with key stakeholders, including creditors, lenders and management to unlock value, restore confidence and create a clear path to recovery.
What Makes Us Different
We approach restructuring proactively, working with clients to stabilise their position and implement sustainable solutions.
Our corporate restructuring attorneys focus on developing strategies that are legally sound, commercially viable and responsive to stakeholder dynamics.
Our approach includes:
- Early intervention to avoid formal insolvency proceedings
- Structuring enforceable and practical restructuring solutions
- Working alongside financial and commercial advisors
- Aligning restructuring strategies with long-term business objectives
Where necessary, we also advise on transition into business rescue or insolvency.
Our Restructuring Services
Advising on debt restructuring and refinancing arrangements
Structuring and negotiating compromise agreements with creditors
Advising on section 155 compromise arrangements
Reviewing and restructuring contractual obligations
Advising on security structures and creditor rankings
Assisting with negotiations between debtors and creditors
Advising on informal workout arrangements
Identifying and mitigating legal risks in restructuring processes
Advising on contingency planning, including escalation into business rescue or insolvency
Representing stakeholders in business rescue proceedings
When to Consult an Insolvency or Business Rescue Attorney
In matters of financial distress, timing is paramount. Having the right legal team involved early can fundamentally change the outcome.
Whether you are a creditor seeking to protect your position or a business facing financial pressure, engaging our insolvency and restructuring team at the earliest stage ensures you are not reacting to events, but actively shaping them.
For creditors, a clear understanding of your rights, remedies and strategic options is critical to preserving value and maximising recovery. We position you ahead of competing interests, ensuring you are informed, protected and able to act decisively when it matters most.
For financially distressed businesses, early intervention unlocks a wider range of solutions — from restructuring and business rescue to negotiated settlements — while also mitigating risks such as director liability and unnecessary loss of value.
Delaying action often limits options and weakens your position. Engaging the right advisors early gives you control, clarity and a strategic advantage.
Contact us today to secure the guidance you need to move forward with confidence.
Frequently Asked Questions
Business Rescue
What is business rescue?
Business rescue is a legal process aimed at rehabilitating a financially distressed company by restructuring its affairs, business, or debt under supervision.
What is the difference between business rescue and liquidation?
Business rescue aims to rehabilitate a company, while liquidation involves winding up the company and distributing its assets to creditors.
When can a company enter business rescue?
When it is financially distressed meaning it is unlikely to pay its debts in the next six months or is likely to become insolvent.
Who can initiate business rescue?
- The company’s board of directors
- An affected person (such as a creditor, shareholder, or employee) through a court application
What happens during business rescue?
- A Business Rescue Practitioner (BRP) is appointed
- A temporary moratorium is placed on legal action against the company
- A rescue plan is developed and presented to creditors
Does business rescue stop creditors from taking action?
Yes, generally a temporary moratorium is placed on legal proceedings, providing breathing room to restructure.
What is the role of a Business Rescue Practitioner?
The BRP oversees the company, develops a rescue plan, and manages negotiations with creditors and stakeholders.
Business Restructuring
What is business restructuring?
Restructuring involves reorganising a company’s finances, operations, or debt to improve viability and avoid formal insolvency where possible.
Is restructuring the same as business rescue?
No. Restructuring can be informal and occur outside of legal processes, whereas business rescue is a formal, regulated procedure.
What types of restructuring are available?
- Debt restructuring
- Operational restructuring
- Asset sales or disposals
- Equity restructuring
- Informal settlements with creditors
Can restructuring prevent liquidation?
Yes, if implemented early and effectively, restructuring can stabilise a business and avoid liquidation.
Insolvency
What is liquidation?
Liquidation is the process of winding up a company’s affairs, selling its assets, and distributing proceeds to creditors.
What is sequestration?
Sequestration is the equivalent process for individuals, involving the surrender or sequestration of an estate.
Who can apply for liquidation?
- The company itself
- Creditors
- Shareholders (in certain circumstances set out in the Companies Act)
What happens to a company’s assets in liquidation?
Assets are collected and sold by a liquidator, and proceeds are distributed to creditors according to their ranking (for eg. Secured, preferent and concurrent creditors)
What rights do creditors have in insolvency?
Creditors have the right to:
- Lodge claims
- Attend and vote at meetings
- Receive distributions
- Challenge certain transactions
How can creditors protect themselves?
By acting early, obtaining legal advice, securing claims where possible, and participating actively in proceedings.
Can I recover money owed by an insolvent company?
Recovery is possible, but depends on asset availability and your ranking as a creditor.