In particular, we specialise in the following areas:
LIQUIDATION
AND SEQUESTRATION APPLICATIONS
We have extensive litigation experience and can advise clients on
the most expedient method of corporate recovery, often utilising the
mechanism of a liquidation or sequestration application. In particular,
we are able to offer focused advice to banks on the advantages to be
obtained by placing a property owning company into liquidation as an
alternative to foreclosing on the mortgage bond in the event of default.
ENQURIES
AND INVESTIGATIONS
We have often conducted investigations on behalf of liquidators, to assess and advise on the validity of claims submitted by creditors,
the possibility of further proceedings against directors, the setting
aside of undue preferences and other impeachable transactions. We also
have strong expertise in advising on the ranking of security and preferences,
and the possible setting aside of preferences claimed by creditors.
Often these investigations culminate in the need for an enquiry under
oath and we are able to convene, and direct the preparation for such
enquiries on behalf of creditors or liquidators.
SCHEMES
OF ARRANGEMENT AND OFFERS OF COMPROMISE
We are able to advise clients on schemes of arrangement and offers
of compromise, either from the perspective of a creditor faced with
an offer of compromise or from the perspective of a client wishing
to utilise the mechanism of a scheme of arrangement in order to acquire
a business. We are able to advise on the implications of such schemes
of arrangement for the workforce, existing contracts and possible tax
benefits.
COMMERCIAL
CONTRACTS AND TRANSACTIONS
We have the expertise to deal with all implications that insolvency
may have for a commercial contract. Too often, parties to a commercial
transaction do not give sufficient consideration as to what would occur
if one of the parties were to be liquidated or sequestrated during
the course of the contract. This includes advising on whether the contract
itself constitutes an impeachable transaction and also whether or not
certain clauses may be enforceable in the event of the liquidation
or sequestration of one of the parties.
We also advise industry-specific clients such as long term life insurers,
banks and investment schemes, financial services companies, parastatals and the like on the impact of insolvency on specific aspects of their
contracts, governing legislation and business.
VOLUNTARY
WINDINGS UP
A significant portion of our Insolvency and Work-outs practice involves advising foreign shareholders who wish to wind down a local South African
subsidiary as part of a group restructuring. We advise on the necessary
corporate actions that need to take place in order to wind the local
subsidiary up voluntarily, in both solvent and insolvent circumstances.
Due to the fact that a number of foreign shareholders appoint their
local directors to the board of directors of the local subsidiary,
we are also able to offer detailed advice on any possible personal
liability that the directors may incur. We are also able to advise
on the circumstances when a deregistration of the local subsidiary
may be considered as an alternative.
The expertise in the Insolvency and Work-outs division often works
hand in hand with other practice areas such as employment law, litigation,
corporate and banking law etc., in order to in order to give the client
complete and comprehensive advice.
The Insolvency and Work-outs practice group prides itself on being
at the forefront of new developments, and trends within the insolvency
common law, as well as the legislation. Members of the Insolvency and
Work-outs division take an active interest in commenting on amendments
to the insolvency legislation and new legislation. Members of the team
are also members of the Association of Insolvency Practitioners of
South Africa ("AIPSA") as well as of the part of the International
Bar Association.
The members of the practice area regularly contribute to publications
and write articles on the developing law.
The group also takes and active interest in training both its junior
professionals as well as clients on both general and topical insolvency
issues and would be happy to tailor-make a series of lectures pertaining
to a client's specific needs. The practice group designed and lectured
a course in insolvency law for the second year students at CIDA City
Campus University.
SELECTED
EXAMPLES OF PROMINENT MATTERS IN WHICH THE FIRM HAS BEEN INVOLVED INCLUDE:
- We act for the liquidator in the liquidation of the Afribrand group of companies and have investigated security claimed by a consortium
of creditors;
- We are currently advising the monitor appointed by order of court
to jointly manage the Fedbond collective investment scheme;
- We were involved in the much publicised liquidation of the 7 Eleven
Group, acting for the franchisor;
- We acted for the liquidators of the JSE listed Leisurenet Group;
- We advise one of the largest trade creditors in the much publicised
winding up of the CNA Group;
- We also advised one of South Africa's largest banks on the restructuring
of its affairs in Namibia by means of a creditor’s scheme of
arrangement;
- We have attended to the winding up of local subsidiaries on behalf
on international clients;
- We also advised an overseas client on insolvency aspects relating
to a tender involving one of South Africa's largest aeroplane
charter companies.
|
