The recent High Court decision in Reiscor Two (Pty) Ltd v Anheuser-Busch InBev Africa (Pty) Ltd represents a pivotal shift in South African insolvency law, marking a win for property disposal companies and business rescue practitioners. By clarifying that Section 34 of the Insolvency Act does not apply to asset disposals in business rescue proceedings, the ruling removes unnecessary procedural hurdles, paving the way for faster, more efficient property sales.

Historically, Section 34 required public notices for certain asset transfers, ensuring creditors could assert their claims. While this protection was critical in liquidation scenarios, its necessity diminished under the Companies Act’s business rescue framework. Business rescue already mandates creditor participation through structured voting processes, making Section 34’s public notice requirements redundant. The Reiscor Two judgment affirms this, emphasising that business rescue ensures creditors remain active stakeholders in asset disposal decisions.

This shift directly benefits property disposal companies, enabling smoother transactions without the risk of sales being voided for non-compliance with Section 34. Buyers gain confidence in acquiring assets without procedural uncertainties, while practitioners can execute rescue plans with fewer delays.
In2Assets is uniquely positioned to capitalise on these changes. With extensive experience in working alongside business rescue practitioners, we provide tailored solutions for property disposals within the business rescue framework. Our expertise ensures that asset sales align with both creditor expectations and rescue plans, offering transparency and efficiency throughout the process.

As a leading auction house, In2Assets understands the complexities of distressed property sales. We bring decades of market knowledge, a robust buyer network, and proven auction strategies to help companies achieve optimal outcomes under tight timelines. This not only supports creditors in recovering value but also contributes to the success of business rescue efforts.

The Reiscor Two judgment underscores the importance of modernising insolvency practices to meet the needs of a dynamic economic environment. For companies navigating business rescue, partnering with In2Assets offers the expertise and agility required to streamline property disposals, ensuring compliance, efficiency, and the best possible returns for all stakeholders.

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