Companies Act, 2008 (Act No. 71 of 2008)Chapter 6 : Business Rescue and Compromise with CreditorsPart A : Business rescue proceedings135. Post-commencement finance |
| (1) | To the extent that any remuneration, reimbursement for expenses or other amount of money relating to employment becomes due and payable by a company to an employee during the company’s business rescue proceedings, but is not paid to the employee— |
| (a) | the money is regarded to be post-commencement financing; and |
| (b) | will be paid in the order of preference set out in subsection (3)(a). |
| (2) | During its business rescue proceedings, the company may obtain financing other than as contemplated is subsection (1), and any such financing— |
| (a) | may be secured to the lender by utilising any asset of the company to the extent that it is not otherwise encumbered; and |
| (b) | will be paid in the order of preference set out in subsection (3)(b). |
| (3) | After payment of the practitioner’s remuneration and expenses referred to in section 143, and other claims arising out of the costs of the business rescue proceedings, all claims contemplated— |
| (a) | in subsection (1) will be treated equally, but will have preference over— |
| (i) | all claims contemplated in subsection (2), irrespective of whether or not they are secured; and |
| (ii) | all unsecured claims against the company; or |
| (b) | in subsection (2) will have preference in the order in which they were incurred over all unsecured claims against the company. |
| (4) | If business rescue proceedings are superseded by a liquidation order, the preference conferred in terms of this section will remain in force, except to the extent of any claims arising out of the costs of liquidation. |