South Africa Case Law

Minister of Communications and Digital Technologies and Another v South African Post Office SOC Ltd and Others

Minister of Communications and Digital Technologies and Another v South African Post Office SOC Ltd and Others [2023] ZAGPPHC 534; 2023-051134 (10 July 2023)

Court

North Gauteng High Court, Pretoria

Case number

2023-051134

Judge

E van der Schyff

The High Court placed SAPO under supervision and business rescue, allowed the Post Office Retirement Fund to intervene, and appointed interim practitioners.

• Business Rescue
• Companies Act Section 131
• State Owned Enterprise Distress
• Creditor Compromise
• Appointment Of Business Rescue Practitioner
• Business-rescue

Carroll v Michael Carroll CC In Re: In the application for the Liquidation of: Michael Carroll CC (under supervision) (2012018808)

Carroll v Michael Carroll CC In Re: In the application for the Liquidation of: Michael Carroll CC (under supervision) (2012018808) [2019] ZAGPPHC 74 (15 March 2019)

Court

North Gauteng High Court, Pretoria

Case number

2018/22808

Judge

L R Adams

The court found that the approved business rescue plan constituted a compromise, conditional upon the applicant meeting its obligations to the Land Bank as set out in the plan. The plan did not require full payment of all outstanding debts, but rather provided for a higher dividend to the creditor than would have been achieved in liquidation. The plan was approved and implemented, and the applicant was thereby rescued as contemplated by the Companies Act. The Business Rescue Practitioner's interpretation that full payment was required was not supported by the wording of the plan. The requirem…

Source excerpt

• Business Rescue
• Companies Act Section 141
• Creditor Compromise
• Liquidation Proceedings

Tyre Corporation Cape Town (Pty) Ltd and Others v GT Logistics (Pty) Ltd and Others (Rogers J)

Tyre Corporation Cape Town (Pty) Ltd and Others v GT Logistics (Pty) Ltd and Others (Rogers J) [2016] ZAWCHC 124; 2017 (3) SA 74 (WCC) (21 September 2016)

Court

Western Cape High Court, Cape Town

Case number

13269/16 & 14203/16

Judge

Rogers

The court found that GT Logistics (Pty) Ltd is commercially and factually insolvent, with unreliable and contradictory financial projections supporting the business rescue application. The proposed business rescue plan unfairly compromises only non-critical creditors, while critical creditors, particularly vehicle financiers, are paid in full. The evidence presented does not establish reasonable grounds for believing that the company can be rescued. The court held that insolvency is not an absolute bar to business rescue, but the plan must be fair and substantiated by credible financial infor…

Source excerpt

• Business Rescue
• Provisional Liquidation
• Creditor Compromise
• Companies Act 71 Of 2008
• Solvency
• Liquidation Scenario