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Is your business struggling? Liquidation or Business Rescue are not the only options: The Section 155 Compromise

14 March 2024

When a business is struggling and creditors are knocking down the door, the primary focus in the past has been liquidation and business rescue. But these are not the only options Section 155 of the Companies Act is another way to address financial distress. This provides a legal framework for a company to restructure its financial obligations and equity. Importantly, a solvent company can proactively employ restructuring to implement financial reorganisation measures.

 

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