As State Owned Enterprises (SOEs) continue to struggle under severe financial pressure, perhaps it is time for them to consider business rescue to alleviate continued financial distress and to avoid potential personal liability of directors who continue to run these companies and rely on the inevitable call up of a government guarantee.
This is according to Dr Eric Levenstein, director & head of the business rescue and insolvency practice at Werksmans Attorneys, who said that entering business rescue could be the first step to financial rehabilitation as president Ramaphosa noted that SOEs simply cannot borrow their way out of financial difficulty.
Many SOEs are financially distressed and if so, their boards are obligated…
Read the full article at: https://businesstech.co.za/news/government/226411/why-sa-state-owned-enterprises-should-consider-business-rescue/
