When does Business Rescue proceeding end?

When a proposed business rescue plan has been voted in as contemplated in the Act, the business rescue plan is deemed to be adopted. Business rescue proceedings however does not end with the adoption of the business rescue plan, but with the substantial implementation thereof.

Although the Act is not clear on exactly when the implementation of the adopted business rescue plan should occur, it suggests that the business rescue practitioner should implement the business rescue plan once it is satisfied that the company is able to give effect to its obligations in terms of the adopted business rescue plan. In practice this will most likely be of the the company commences with its first payments towards creditors in terms of the business rescue plan.

The business rescue plan is deemed to be substantially implemented once the business rescue practitioner files a prescribed notice of substantial implementation with the Companies and Intellectual Property Commission.