Geddes Capital is a specialist provider of business rescue finance. We understand the nuances of business rescue having provided post-commencement finance in various successful turnarounds.
Your business is in financial distress
The business is a viable business that is capable of being turned around or sold
The company or stakeholders have assets (including debtors) that can be used as security for a credit facility
Your business has updated financials, an annual turnover of at least R5 million and has been trading for more than 3 years
In terms of the Companies Act, PCF obtained during the company’s business rescue process that has been approved by the business rescue practitioner, will rank ahead of the company’s historic, unsecured creditors. When Geddes provides PCF, we would require tangible assets or debtors as security for a PCF loan. The other terms and conditions will vary according to what’s required in the circumstances.
For us to provide initial feedback, we would need to consider the business’s two most recent sets of published annual financial statements and last six months of bank statements.
A company that is in financial distress and cannot secure PCF would most likely need to be liquidated.
A company that enters business rescue is usually over-indebted, and would usually need an injection of “new money” to assist in settling historic debts and providing working capital to increase turnover. A business rescue will rarely (if ever) be successful without PCF.