Corporate Rescue (Business Rescue)
Appointment of a Corporate Rescue Practitioner (CRP)
Corporate Rescue, often referred to as Business Rescue, is a relatively new framework in Zimbabwe (introduced by the Insolvency Act in 2018), replacing the previous judicial management provisions. Its primary objective is to rehabilitate a financially distressed company to allow it to continue trading on a solvent basis, or, if that's not possible, to facilitate a better return for creditors and shareholders than would be achieved through immediate liquidation.
Moratorium on Legal Proceedings
A critical benefit of corporate rescue is the imposition of a temporary moratorium (suspension) on legal proceedings and enforcement actions against the company. This provides breathing room for the company to restructure without immediate pressure from creditors.
Development of a Rescue Plan
The CRP's primary responsibility is to develop a comprehensive rescue plan. This plan outlines strategies for restructuring the company's affairs, business, property, debts, and other liabilities. It may involve debt restructuring, asset sales, operational changes, or other measures to achieve solvency.