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The status of post-commencement finance for business rescue in South Africa
Dissertation (MBA)--University of Pretoria, 2012.
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University of Pretoria
2013
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| _version_ | 1867613469991239680 |
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| access_status_str | Open Access |
| author2 | Pretorius, Marius |
| author_browse | Pretorius, Marius |
| author_facet | Pretorius, Marius |
| collection | Thesis |
| dc_rights_str_mv | © 2012 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria. |
| description | Dissertation (MBA)--University of Pretoria, 2012. |
| format | Thesis |
| id | oai:repository.up.ac.za:2263/29597 |
| institution | University of Pretoria (South Africa) |
| last_indexed | 2026-06-10T12:36:39.169Z |
| license_str | Other — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from UPSpace — University of Pretoria Institutional Repository |
| publishDate | 2013 |
| publishDateRange | 2013 |
| publishDateSort | 2013 |
| publisher | University of Pretoria |
| publisherStr | University of Pretoria |
| record_format | dspace |
| source_str | UPSpace — University of Pretoria Institutional Repository |
| spelling | oai:repository.up.ac.za:2263/29597 The status of post-commencement finance for business rescue in South Africa Pretorius, Marius ichelp@gibs.co.za Du Preez, Wanya UCTD Distressed lending Financial distress Corporate renewal Post-commencement finance Business rescue Dissertation (MBA)--University of Pretoria, 2012. With the onset of globalisation and markets being exposed to the effects of global recessions and economic downturns, the fundamental principles on which business operates have changed substantially. Some businesses have thrived in this new context, whilst others have struggled to remain competitive as is evident by the increasing trend of corporate failures and the considerable increase in liquidations. As a result the concept of corporate renewal and business rescue has become an integral element of the strategy of organisations, particularly those that are financially distressed.South Africa responded through the introduction of the new South African Companies Act 71 of 2008, which came into effect in May 2011 and contained a new chapter called Chapter 6: Business rescue and Compromise with Creditors. However one of the critical components of the success of the business rescue, which has been largely unsuccessful to date, involves securing turnaround finance (post-commencement finance) to restore the company‘s financial health.The aim of this study was to find substantive evidence that the presence of post-commencement finance in South African companies does not exist, as opposed to the findings of international research, as well as the exploration and confirmation of factors that result in the successful raising of post-commencement financing.To this end, qualitative research with an exploratory design was conducted. Eighteen leading South African business rescue experts were interviewed to uncover their unique insights regarding this dilemma. The rich data that was unearthed was analysed using content and narrative analysis against the propositions derived from the literature. The empirical findings confirmed that the current level of PCF in South Africa is non-existent due to various reasons. A host of critical success factors and reasons for disinterest were identified which formed the basis of a framework informing the best practice guidelines when raising PCF. Some of these include many of unintended consequences of the newness of the Act, business rescue processes being left too late, the poor financial state of the business that eventually files for rescue and the significant impact on the outcome by some of the key players (e.g. the fiannciers and business rescue practitioners). These guidelines will solve the dilemma under review by benchmarking them to international best practice.Several important areas for future research emerged, alongside the recommendations of insights gained outlined for the various stakeholders. Gordon Institute of Business Science (GIBS) unrestricted 2013-09-07T16:03:21Z 2013-04-26 2013-09-07T16:03:21Z 2013-04-25 2012 2013-02-16 Dissertation Du Preez, W 2012, The status of post-commencement finance for business rescue in South Africa, MBA dissertation, University of Pretoria, Pretoria, viewed yymmdd < http://hdl.handle.net/2263/29597 > F13/4/152/zw http://hdl.handle.net/2263/29597 http://upetd.up.ac.za/thesis/available/etd-02162013-150831/ © 2012 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria. application/pdf University of Pretoria |
| spellingShingle | UCTD Distressed lending Financial distress Corporate renewal Post-commencement finance Business rescue The status of post-commencement finance for business rescue in South Africa |
| title | The status of post-commencement finance for business rescue in South Africa |
| title_full | The status of post-commencement finance for business rescue in South Africa |
| title_fullStr | The status of post-commencement finance for business rescue in South Africa |
| title_full_unstemmed | The status of post-commencement finance for business rescue in South Africa |
| title_short | The status of post-commencement finance for business rescue in South Africa |
| title_sort | status of post commencement finance for business rescue in south africa |
| topic | UCTD Distressed lending Financial distress Corporate renewal Post-commencement finance Business rescue |
| url | http://hdl.handle.net/2263/29597 http://upetd.up.ac.za/thesis/available/etd-02162013-150831/ |