Post-Commencement Finance

Post-commencement finance is capital that is provided to the company once business rescue proceedings have commenced. According to the Act, any remuneration, reimbursement for expenses or other money relating to employment that becomes due and payable by a company to an employee during business rescue, is also considered to be post-commencement finance.

During business rescue proceedings, the company is permitted to approach a financier and utilise an asset of the company to the extent that it is not already encumbered.

Post-commencement financing and structuring is a specialised and technical matter that requires careful legal expertise. Our team is able to advise on the circumstances regarding financing and can also introduce the company to potential post-commencement funders.

Our team of commercial attorneys assists companies by providing practical and commercial legal advice regarding post-commencement funding or private equity following business rescue proceedings, contingency planning, restructuring and insolvencies. We take a proactive and commercial approach toward achieving the best possible outcome for our commercial clients.

We address all aspects of the funding process and utilise the expertise of our specialists from other practice areas, including tax, financial, litigation and employment law.