Article
What's in a name: “contingent and prospective” creditors in business rescue
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.
Cliffe Dekker Hofmeyr