Introduction
Many companies in Zimbabwe face financial difficulties at some point. Whether due to economic downturns, cash flow issues, or unexpected crises, the pressure can be overwhelming. Business rescue offers a structured, legal solution that could help a struggling business recover instead of collapsing.
What is Business Rescue?
Business rescue is a process introduced under the Zimbabwe Companies and Other Business Entities Act [Chapter 24:31] (source).
It allows a financially distressed company to appoint a Business Rescue Practitioner who supervises the development of a rescue plan to restructure operations, cut debts, and restore viability.
Key Features of Business Rescue
- Temporary protection from legal action by creditors
- Appointment of a licensed Business Rescue Practitioner
- Creation of a recovery plan approved by creditors and stakeholders
- Opportunity to renegotiate debts, restructure operations, and regain stability
Why Consider Business Rescue?
- Avoid liquidation and job losses
- Preserve the value of the business
- Maintain trading relationships
- Protect directors from personal liability in some cases
How RPBS Can Help
At Rescue Point Business Solutions (RPBS), we work closely with distressed businesses to assess their situation, develop viable recovery strategies, and manage negotiations with creditors.
Our experienced practitioners guide you through the complex legal and financial aspects of business rescue.
Final Thoughts
Taking early action is vital. The earlier business rescue is considered, the better the chances of recovery.
If your business is showing signs of distress, contact RPBS today for a confidential consultation.