Meticulous advice when financial distress changes the risk
Insolvency proceedings affect control, assets, contracts, employees, creditors and directors. Decisions made under pressure can create personal exposure or destroy value that a structured intervention might preserve.
CVZ Attorneys advises creditors, companies, directors, shareholders and affected individuals across the insolvency spectrum. We assess whether proceedings are feasible, whether they should be commenced or opposed, and what commercial outcome the available procedure is likely to produce.
Liquidation and sequestration applications
We advise on initiating and opposing corporate liquidation and personal sequestration proceedings, including evidence of indebtedness and insolvency, procedural requirements, disputed claims and counter-proceedings. The analysis includes whether liquidation, sequestration or another recovery method is the most expedient route.
Enquiries and investigations
Work arising from sequestration or liquidation orders may include enquiries under the Companies Act and Insolvency Act, assessing the validity of creditor claims and considering proceedings involving directors or other responsible parties. These matters require careful control of evidence, statutory powers and procedural fairness.
Schemes of arrangement and offers of compromise
We advise on restructuring tools and negotiated compromises involving business acquisition or reorganisation, workforce and contract implications, and identified tax consequences. Specialist tax advice is coordinated where required; the firm should not be understood to provide tax opinions outside its confirmed mandate.
Voluntary winding-up
We advise on voluntary winding-up, potential personal liability, the required corporate steps and whether deregistration or another alternative is legally and commercially appropriate.
Business rescue
Under Chapter 6 of the Companies Act 71 of 2008, business rescue is intended to rehabilitate a financially distressed company by restructuring its affairs, business, property, debt and liabilities. We advise stakeholders on the process and whether it offers a reasonable prospect of continued solvent existence or a better return to creditors or shareholders than immediate liquidation.
Insolvency-related litigation
The firm also undertakes litigation emanating from liquidation and sequestration orders. This may involve challenged dispositions, creditor disputes, recovery proceedings and questions about office-holders or directors, within the agreed scope of the mandate.
Frequently asked questions
Is liquidation a debt-collection shortcut?
No. It is a collective insolvency remedy with serious consequences. A genuinely disputed debt or solvent respondent may make ordinary proceedings more appropriate.
Does financial distress automatically mean business rescue?
No. There must be a reasonable prospect of rescue, and timing matters. The facts, funding, stakeholder position and proposed restructuring require close assessment.
Can directors face personal liability?
Potential exposure depends on conduct, statutory duties and the facts. Directors should obtain advice early and avoid preferring informal solutions that may worsen their position.
Assess the options before value is lost
Contact CVZ Attorneys for a focused view of liquidation, sequestration, restructuring or business-rescue risk.