Advantages of Business rescue
- Business Rescue May Provide a Better Return for Creditors.
- Business Rescue May Help the Company Achieve Solvency.
- A Rescued Company Is Preferable to a Liquidated Company.
- Preservation of Employees and Assets.
Disadvantages of Business rescue
On the one hand and currently, the single most adverse effect of business rescue proceedings is the negative publicity the company undertaking such proceedings undergoes in the financial world. Financial institutions are reluctant to grant post-commencement finance for companies under business rescue and in most instances, such financial institutions may elect to suspend its facilities with the company pending a renewal application by the business rescue practitioner appointed.