What is STURNS?
STURNS is a respected business rescue practice, offering business rescues to financially distressed companies, in-house training and seminars. Although we operate across diverse market segments, our business rescue services are tailored to the specific requirements of small, medium and large enterprises. In accordance with the Companies’ Act, we enable numerous benefits to a company, including a moratorium on legal proceedings.
Our approach to the business rescue procedure is guided by a unique value-added concept, the SEACAM approach. Three crucial aspects of an ailing business are evaluated: systems and controls, corporate governance and management. These key areas are assessed, upgraded and incorporated into the business, ensuring its long-term sustainability while protecting the interests of shareholders and creditors alike. Our services range from a complete business turnaround to a work-out or settlement between an asset-based organisation and its creditors.
We strive to offer a superior, ethical service to all stakeholders in the business rescue process.
We are driven to transform financially unstable concerns into profitable, long-term businesses.
The business rescue process
Business rescue is a legal process in accordance with Chapter 6 of the Companies’ Act that aims to rescue and rehabilitate companies in financial distress.
A Company is placed into business rescue, voluntarily or by order of the Court by applicants such as directors, creditors, employees or trade unions acting on behalf of employees.
An independent business rescue practitioner, with full control of the company, is subsequently appointed. Meetings are held to formulate a comprehensive business rescue plan that the company’s creditors must agree with. Once the creditors have assented by vote, the practitioner implements the business rescue plan in an attempt to save the company from liquidation.
Only once the company is operating effectively is the business released from business rescue and allowed to trade independently.
The benefits of business rescue
The process offers a moratorium on all legal proceedings against the company, enabling the business or its debt to be restructured. Business rescue not only facilitates a compromise with the company’s creditors but prevents a third party from implementing liquidation procedures or seizing its assets.