Pre insolvency procedures: a United Kingdom and South African perspective
Introduction In light of the longstanding economic crisis the need for corporate rescue culture has been evolving in Europe and across the rest of the world. Great emphasis has been placed on rescue at an early stage and it appears that more and more rescue is attempted at a preinsolvency stage, so as to enhance the likelihood of a successful reorganisation. The aim of this paper is to consider the pre insolvency procedures available in the United Kingdom and South Africa. In particular the paper provides an overview of the CVA procedure and the Schemes of Arrangement in the United Kingdom as well as the Business Rescue and the Compromise procedures in South Africa. In conclusion, the paper aims to provide an overview of the approach taken in both jurisdictions towards less formal restructurings by 'key players' in insolvency, such as insolvency practitioners and secured creditors as well as the courts.