A private equity structure to facilitate the effective post-commencement financing of business rescue

 

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dc.contributor.advisor Yeats, Jacqueline en_ZA
dc.contributor.advisor Bradstreet, Richard en_ZA
dc.contributor.author Reineck, Juan-Pierre en_ZA
dc.date.accessioned 2015-11-21T09:38:02Z
dc.date.available 2015-11-21T09:38:02Z
dc.date.issued 2015 en_ZA
dc.identifier.citation Reineck, J. 2015. A private equity structure to facilitate the effective post-commencement financing of business rescue. University of Cape Town. en_ZA
dc.identifier.uri http://hdl.handle.net/11427/15191
dc.description.abstract Business rescue is a process through which a financially distressed company can be rehabilitated by providing for the temporary supervision of the company, the management of its affairs, business and property. Focused research indicates that one of the main reasons that business rescues in South Africa have failed is due to the lack of post-commencement rescue finance. This dissertation puts forward a researched and suggested financial structure solution that combines two comparatively new concepts in South African corporate law, being business rescue from the Companies Act 71 of 2008 and the financing of venture capital companies in the Income Tax Act 58 of 1962. The outcome of the suggested post-commencement finance structure is that the investors investing in this structured solution would receive an immediate benefit in the form of a tax deduction and a reduction in the financial risk exposure of the investment. In turn, the company in business rescue receiving the investment funds from this finance structure would also benefit from fewer cost burdens associated with traditional debt financing (i.e. servicing of the debt) and thereby increase the probability of a successful business rescue, concomitantly resulting in the improvement in economic activity and importantly, the retention of jobs in South Africa that it so desperately needs. en_ZA
dc.language.iso eng en_ZA
dc.subject.other Commercial Law en_ZA
dc.title A private equity structure to facilitate the effective post-commencement financing of business rescue en_ZA
dc.type Master Thesis
uct.type.publication Research en_ZA
uct.type.resource Thesis en_ZA
dc.publisher.institution University of Cape Town
dc.publisher.faculty Faculty of Law en_ZA
dc.publisher.department Department of Commercial Law en_ZA
dc.type.qualificationlevel Masters
dc.type.qualificationname LLM en_ZA
uct.type.filetype Text
uct.type.filetype Image
dc.identifier.apacitation Reineck, J. (2015). <i>A private equity structure to facilitate the effective post-commencement financing of business rescue</i>. (Thesis). University of Cape Town ,Faculty of Law ,Department of Commercial Law. Retrieved from http://hdl.handle.net/11427/15191 en_ZA
dc.identifier.chicagocitation Reineck, Juan-Pierre. <i>"A private equity structure to facilitate the effective post-commencement financing of business rescue."</i> Thesis., University of Cape Town ,Faculty of Law ,Department of Commercial Law, 2015. http://hdl.handle.net/11427/15191 en_ZA
dc.identifier.vancouvercitation Reineck J. A private equity structure to facilitate the effective post-commencement financing of business rescue. [Thesis]. University of Cape Town ,Faculty of Law ,Department of Commercial Law, 2015 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/15191 en_ZA
dc.identifier.ris TY - Thesis / Dissertation AU - Reineck, Juan-Pierre AB - Business rescue is a process through which a financially distressed company can be rehabilitated by providing for the temporary supervision of the company, the management of its affairs, business and property. Focused research indicates that one of the main reasons that business rescues in South Africa have failed is due to the lack of post-commencement rescue finance. This dissertation puts forward a researched and suggested financial structure solution that combines two comparatively new concepts in South African corporate law, being business rescue from the Companies Act 71 of 2008 and the financing of venture capital companies in the Income Tax Act 58 of 1962. The outcome of the suggested post-commencement finance structure is that the investors investing in this structured solution would receive an immediate benefit in the form of a tax deduction and a reduction in the financial risk exposure of the investment. In turn, the company in business rescue receiving the investment funds from this finance structure would also benefit from fewer cost burdens associated with traditional debt financing (i.e. servicing of the debt) and thereby increase the probability of a successful business rescue, concomitantly resulting in the improvement in economic activity and importantly, the retention of jobs in South Africa that it so desperately needs. DA - 2015 DB - OpenUCT DP - University of Cape Town LK - https://open.uct.ac.za PB - University of Cape Town PY - 2015 T1 - A private equity structure to facilitate the effective post-commencement financing of business rescue TI - A private equity structure to facilitate the effective post-commencement financing of business rescue UR - http://hdl.handle.net/11427/15191 ER - en_ZA


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