Voluntary business rescue proceeding as a rescue mechanism for business

Overview

When faced with any crisis that impacts their operations, businesses should urgently undertake an assessment on their liquidity position through cashflow forecasting and, based on the outcome of this assessment, manage affected stakeholders proactively.

The liquidity assessment through cashflow forecasting may reveal that the business will struggle to meet its obligations to creditors or breach covenants. In such a situation, businesses have various options for dealing with the creditors. They could renegotiate debts repayments with lenders by seeking a moratorium on debt service or restructure the debt, negotiate extended payments terms with suppliers, reduce their workforce, dispose idle or underutilized assets and/or cut operational costs.

 

Contact us

Andrew Chibuye

Country Senior Partner, PwC Zambia

Tel: +260 (0) 211 334 000

George Weru

Partner | Advisory, Business Restructuring and Forensics Services, PwC Kenya

Tel: +254 (20) 285 5000

Moonga Hamukale

Senior Manager, PwC Zambia

Tel: +260 211 334000

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