PRO­FILE OF A COM­PANY IN BUSI­NESS RES­CUE

Finweek English Edition - - INSIGHT: LOCAL -

Busi­ness res­cue has been largely un­suc­cess­ful to date, with many high-pro­file com­pa­nies such as 1time and Sanyati fail­ing to reap the ben­e­fits and ul­ti­mately ful­fil the man­date of busi­ness res­cue. Ac­cord­ing to the CIPC, a sam­ple of 117 com­pa­nies in­di­cate that 55% of busi­nesses have been suc­cess­fully res­cued (CIPC An­nual Re­port 2011/2012) to the pe­riod March 2012, how­ever when con­sid­er­ing the cur­rent 840 ap­pli­ca­tions to date, the real rate of suc­cess is closer to 12-15% when tak­ing into ac­count pend­ing res­cues. In­ter­est­ingly, the ma­jor­ity (64%) of com­pa­nies fil­ing for busi­ness res­cue are pri­vate com

Phase Phase name pa­nies that have been in op­er­a­tion for 5-10 years (CIPC An­nual Re­port 2011/2012). Fur­ther­more, 43% of busi­nesses that have filed are in the

Crit­i­cal and emer­gency fund­ing

Pre-plan fund­ing

Post-plan exit fund­ing

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