About the Programme

The Business Rescue Programme is a voluntary last mile programme to prevent liquidation of enterprises using:

• independent expert business advisors,
• and possible partial debt conversion into patient capital.

Depending on the nature of the enterprise and its difficulties, the programme may entail a conversion of a portion of debt into some form of patient capital instruments, such as equity, or preference share capital, or a combination of both.

An independent business rescue advisor may be employed to assist with business turnaround.

In the event of successful rescue of the enterprise, owners will be given first option to repurchase preference shares or equity..

Eligibility

• Evidence of financial distress
  • Defaulting enterprises
  • Persistent difficulty in repayment of DBN loan
  • Visibly declining business financial performance
• Business has to be converted into a Pty (Ltd) to enable the use of certain instruments such as share arrangements
• The business must be operational and able to service an acceptable level of its debt
• This programme is only open to existing DBN borrowers

Independent Business Rescue Advisors

Business rescue advisors are recruited on the basis of:

• Experience & qualification
• Multi-skilled or experts in fields
• Impartial views of issues and solutions
• Transfer of knowledge and skills where enterprises can be rescued

They provide recommendations on:

• Whether a business can be turned around or if liquidation is the only viable option
• Inclusion under debt to preference share conversion
• Other business rescue mechanisms
• Terms & conditions for business rescue.

Info sheet

The Business Rescue Programme is administered by the Portfolio Management Department.