Rising through the ranks: A Landlord's business rescue journey
Description
When a company goes into business rescue, every creditor ofthat company, understandably, becomes concerned. Landlords are no exception, as business rescue limits and curtails certain creditors' rights. The amendments brought about by section 135 (1A) of the Companies Act 71 of 2008 have at least brought a little sigh of relief to landlords. The amendment provides for the costs in respect of and not exceeding the aggregate for all public utility services such as the company in business rescue's share of rates and taxes,electricity, water and sanitation paid by the landlord on behalf of the lessee to constitute post commencement finance. The position before the amendments was that these costs formed part of the landlord's unsecured claim.
In this podcast Lucinde Rhoodie and Muwanwa Ramanyimi, in the Dispute Resolution practice unpack the amendments as well as the landlord's rights to cancel lease agreements and to bring eviction proceedings against the company in business rescue.
United States
