Insolvency, liquidation and business rescue services

Financial distress raises a question that is partly legal and partly commercial: is the business or the estate capable of being saved, and if so, by which route? South African law offers several — voluntary surrender, sequestration, business rescue, compromise, liquidation — and choosing between them early makes a substantial difference to the outcome.

Our business rescue and insolvency department has litigated these matters in the High Court, acting both in defence and in application, for individuals and for companies.

Liquidation and sequestration

For individuals: sequestration services — voluntary and “friendly” sequestration, where an individual applies to the High Court for the surrender of their estate where it is to the benefit of creditors; advice on the effect of sequestration on assets, employment and future financial standing; and rehabilitation applications to restore legal status after sequestration.

For businesses: liquidation and winding up — where a company or close corporation is no longer commercially or factually solvent, we facilitate the legal exit. Voluntary liquidation assists directors and shareholders in a proactive winding up; compulsory liquidation represents creditors in applications to liquidate companies unable to pay their debts.

Technical advisory and compliance

Liquidation and distribution accounts — drafting formal accounts that detail the realisation of assets and the distribution of proceeds, and ensuring compliance with statutory preferences and secured creditor rankings, because the accuracy of the account determines whether the Master will approve it.

Specialised insolvency advisory — guidance on impeachable transactions including voidable preferences, dispositions without value and transactions intended to prejudice creditors under sections 26 to 30 of the Insolvency Act; assistance to creditors with the formal submission and substantiation of proof of claims at meetings of creditors; and advice on a liquidator’s powers to terminate or continue contracts entered into before insolvency.

Why choose OM Baloyi Inc.

Every step is handled strictly within the requirements of the applicable statutes, because a defect in the process is a defect in the outcome. We work to maximise the dividend available to creditors while keeping the process beyond reproach, and we are transparent about costs, timelines and the “advantage to creditors” test that South African courts apply.