Every company has its own unique circumstances. Therefore, stakeholders need to carefully consider what options are available to them in order to mitigate their losses in the event that the company is financially distressed or insolvent.

It is not always the company itself that takes proactive steps in the event of financial distress or insolvency, but often creditors who take the necessary steps to place the company under the control of an independent third party, with a view to restructuring the affairs of the company or winding-up the business for the benefit of the company’s creditors.

View this infographic  by the South African Restructuring & Insolvency Practitioners Association’s (SARIPA) Young Blood initiative illustrating  formal mechanisms available according to South African law that could be considered namely: 1. Business Rescue 2.  Liquidation and 3. A Section 155 Compromise of Creditors