Sentinel Turnaround and Rescue
Depending on the ‘health’ of the business there are appropriate steps that management can take in the best interest of all stakeholders.
With new Companies Act No 71 of 2008 coming into operation soon Chapter 6 makes provision for a legislated business rescue process for companies in distress. A business rescue practitioner is appointed to conduct the process and moratorium on any legal action by creditors is called while the rescue process is in progress.
However, before getting to the formalized Chapter 6 phase businesses can also go through various phases of business renewal depending on its level of ‘health’.
| State of Health | Intervention |
| Healthy and Stable | Pro-active Business and profitability improvement |
| Moderately Under-performing | Re-active Business and profitability improvement |
| Severely Under-Performing | Business Turnaround |
| Financial Distress | Business Rescue (Chapter 6) |
Shareholders, owners and/or management have a fiduciary duty to act in the best interest of all stakeholders of the company or business. For example, if a business is technical insolvent and new orders are placed on suppliers knowingly that the prospect of the supplier being paid according to
Turnaround / Rescue