Liquidation – Business Insolvent

Liquidation Advice

 

We’ll not only throw you a life boat, we’ll clear the waters and row the boat to shore for you!  Liquidation in our view is not the end, but a new beginning.  It is important that the process is supporting your new Business Plan.  Our challenge is always to align the two.

Call us for a Free Liquidation Consultation

012 648 8800

 

What is liquidation?
Liquidation is the process by which a legal entity is closed down, because the business has become insolvent.

What is Business Rescue vs Liquidation?
Business Rescue is the Debt Review for a Legal entity. Legal protection is obtained in order to give the Business an opportunity to propose and agree a new business plan and actions with its Creditors.
Business Rescue is an expensive process. A external Business Practitioner and team has to be appointed. The minimum cost for a Business will be R80 000 per month for a minimum of 6 months. That is why Business Rescue has been designed for medium to large organisations, not for small Businesses. Quite often in smaller Businesses, Liquidation is in any case inevitable once the Business is running into serious Liquidity problems.

When does liquidation take place?

  • If a company conducts business whilst factually insolvent the directors can be held liable for debt incurred, so the company has to close down.
  • Liquidation can be part of a financial restructuring plan in order to achieve new objectives.
  • Seizes to conduct business.

How will liquidation help you?

  • All risks against directors will be managed.
  • You will be free to strategise a new business plan.
  • You will be free to implement a new business plan.

How does it work?

  • Liquidation is a fairly simple process and all we require from you will be the director’s resolution and the company details. However, every liquidation process is different because the outcomes desired are specific to our clients.
  • We will consult with you to better understand your needs and then come up with a plan of action that will bring about the best possible outcome. We are Business people. All processes must make economic sense, else why do it? It is always important that we drive towards a desired outcome, and in the majority of cases Liquidation is just part of the process
  • The liquidation process is fast and can take less than two weeks to resolve. We will only begin this process once we have consulted with you and have agreed upon the outcome.