Navigating Business Rescue, Insolvency, and Real Estate Challenges – Galetti’s SARIPA Conversations:

Share this post

Facebook
LinkedIn
WhatsApp

Navigating Business Rescue, Insolvency, and Real Estate Challenges – Galetti’s SARIPA Conversations

Navigating Business Rescue

We hosted a podcast station at the 16th annual SARIPA (South African Restructuring and Insolvency Practitioners Association) conference, where industry experts shared their perspectives on business rescue, insolvency, and the critical role of real estate.

These discussions revealed valuable insights and strategies for professionals working to save businesses and manage financial distress. Here are the key takeaways from our conversations with Aviwe NdyamaraGerhard AlbertynGideon Bochedi, and Gideon Slabbert.

 

Balancing Stakeholders in Business Rescue

Business rescue is a complex process that involves aligning the interests of multiple stakeholders—creditors, landlords, employees, and business rescue practitioners. Effective communication is crucial for navigating this delicate balance.

 

Gideon Slabbert, Director at Corporate Business Rescue, emphasized this point:

 

“Transparency and constant communication between the business rescue practitioner and the landlord are key. Without mutual understanding, a successful outcome is almost impossible.”

 

Landlords often play a pivotal role in the success of a business rescue plan. Slabbert highlighted the importance of flexibility in negotiations, noting that rental abatements or adjusted terms can alleviate cash flow pressure and provide businesses with a lifeline.

 

The Role of Credit Insurance in Business Stability

When businesses face financial uncertainty, credit insurance can be a powerful safety net. Gideon Bochedi, COO of the Credit Guarantee Insurance Corporation, explained how this tool can protect businesses from non-payment risks:

 

“With credit insurance, companies can trade confidently, knowing that if their customers fail to pay, they have financial protection.”

Bochedi stressed the broad applicability of credit insurance, particularly in sectors like steel manufacturing, agriculture, and exports. This protection enables businesses to continue operations even when their clients are in distress.

 

Addressing Real Estate Challenges

For many businesses, real estate is a significant factor during financial distress. Leased properties can either be an asset or a burden, depending on the circumstances. Gerhard Albertyn, Partner at Metis Strategic Advisors, highlighted the challenge of high rental costs:

 

“The reality is that some businesses are locked into rental agreements that are no longer viable. If landlords aren’t open to renegotiating, these businesses face an uphill battle.”

 

In these situations, collaboration between landlords and tenants is key. John Jack, CEO of Galetti Corporate Real Estate, reflected on the importance of finding a balanced approach:

 

“Real estate negotiations are about finding a middle ground. A vacancy can hurt a landlord’s asset value, but an inflexible approach can push a tenant into liquidation.”

 

Learning from Real-World Experiences

Aviwe Ndyamara, Director at Tshwane Trust Company (Pty) Ltd, shared insights into the nuances of business rescue. He noted that every case presents unique challenges and opportunities:

 

“You have to be adaptable and creative. No two rescues are the same, and the ability to think on your feet is what often makes the difference.”

 

Ndyamara underscored the importance of having a clear plan and securing the right expertise to execute it effectively.

 

The Path to Recovery and Growth

Despite the challenges, there was a sense of cautious optimism at the SARIPA conference. Gideon Slabbert summed it up well:

 

“Everyone realizes what needs to be done. The key is securing the financial resources and following through with effective plans.”

By fostering collaboration, leveraging credit insurance, and managing real estate wisely, businesses can navigate financial distress and emerge stronger.

 

A Collaborative Future

The conversations at SARIPA highlighted that business rescue is not a solo effort. It requires communication, flexibility, and strategic thinking from all parties involved. Whether it’s landlords adjusting rental agreements, insurers providing a safety net, or practitioners guiding the process, success depends on working together.

 

For a deeper dive into these discussions, watch the full podcast episodes featuring:

Aviwe Ndyamara, Gerhard Albertyn, Gideon Bochedi, and Gideon Slabbert.

Watch the episodes here

Read Our Reviews

View Our Properties

Contact Our Team Today

More To Read