Business Rescue Clause Samples
The Business Rescue clause outlines procedures and rights in the event that a party to the contract enters into business rescue proceedings, such as restructuring or insolvency protection. Typically, this clause specifies notification requirements, the impact on contractual obligations, and may grant the non-affected party certain rights, such as suspending performance or terminating the agreement. Its core function is to manage the risks and uncertainties that arise when a party faces financial distress, ensuring both parties understand their rights and obligations during such events.
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Business Rescue no corporate action, legal proceedings or similar procedure or steps have been taken nor do any circumstances exist which are likely to give rise to steps being taken in respect of the Borrower or any of its Subsidiaries relating to the appointment of a business rescue practitioner or similar officer of it of any of its Assets, nor has anything analogous to any of the foregoing occurred in any applicable jurisdiction.
Business Rescue. The Customer agrees that in the event that the Customer is placed under business rescue in terms of Chapter 6 of the Companies Act 2008, the conclusion of any compromise of the debt under such approved business rescue plan will not reduce the liability of any person or entity that has signed surety for the debts due by the Customer to Bosun and such surety shall remain liable for the full amount of the debt that was due before such compromise, not-withstanding that it is acknowledged, agreed and understood by the Customer that the surety may be entitled to have recourse against the Customer for amounts paid by the surety to Bosun pursuant to such suretyship.
Business Rescue neither the board of directors of the Borrower, nor of any of its Subsidiaries has resolved to commence business rescue proceedings, nor has any such board or any of its agents, officers or employees taken any other steps contemplated under the Companies Act in anticipation of business rescue proceedings, in respect of itself or any of its Subsidiaries.
Business Rescue. 13.1. In the event that:
13.1.1. The Customer becomes financially distressed or encounters financial difficulty or is reasonably likely in the next six months to be insolvent (i.e. it is reasonably likely the Customer will be unable to pay all of its debts as they become due in the next six months);
13.1.2. The Customer will in the next six months not satisfy the Solvency and Liquidity Requirements as provided for in the Companies Act 71 of 2008; or
13.1.3. court proceedings have been instituted, either by the Customer or by a third party, to place the Customer under Business Rescue proceedings; or
13.1.4. a shareholder, the Chairman, Managing Director, Chief Executor Officer or Board of the Customer is considering placing the Customer under Business Rescue proceedings by resolution, or the Customer becomes aware of any other person’s intention to apply for this; the Customer undertakes that it will give written notice to the Company, not less than 10 (TEN) days before any resolution is taken to place the Customer under Business Rescue proceedings, or immediately upon service on the Customer of action or application which seeks to place the Customer under Business Rescue proceedings, informing the Company of the general financial position of the Customer and of the possibility that the Customer may be placed under Business Rescue proceedings in the near future.
13.2. Upon receipt of notice in terms of clause 12.1, the Company shall be entitled, without any penalty of any kind whatsoever, to:
13.2.1. cancel the Agreement or any part thereof;
13.2.2. suspend any and all deliveries by the Company, or any other third party contracted by the Company, to the Customer; and
13.2.3. demand immediate payment of all amounts owing by the Customer to the Company, whether such payments are already due and payable to the Company or not.
13.3. In the event that the Customer fails to give notice to the Company of the financial position of the Customer in terms of clause 12.1, such failure to give notice shall amount to a material breach of this Agreement and shall entitle the Company to cancel this Agreement with effect from the date of the breach as estimated by the Company, without any penalty of any kind whatsoever, notwithstanding that the Customer may subsequently have been placed under Business Rescue proceedings, either by the passing of a resolution or by court order.
Business Rescue. If Supplier is a company incorporated in South Africa, it shall notify Canon, in writing, telephonically, and by e-mail, within 2 days of the occurrence of the following events: (i) when the board of Supplier becomes aware that it is Financially Distressed; (ii) when the board of Supplier contemplates, considers, discusses or agrees to any Business Rescue of Supplier or proposes to do any of the things referred to in this Clause 24; or (iii) when Supplier becomes aware of any person proposing to take, or taking, any step to apply to court for the Business Rescue of Supplier.
Business Rescue. The Customer agrees that in the event that the Customer is placed under business rescue in terms of Chapter 6 of the Companies Act 2008, the conclusion of any compromise of the debt under such approved business rescue plan will not reduce the liability of any person or entity that has signed surety for the debts due by the Customer to SmartStone and such surety shall remain liable for the full amount of the debt that was due before such compromise, notwithstanding that it is acknowledged, agreed and understood by the Customer that the surety may be entitled to have recourse against the Customer for amounts paid by the surety to SmartStone pursuant to such suretyship.
Business Rescue no person has applied to court for an order commencing business rescue proceedings in respect of the Borrower or any of its Subsidiaries.
Business Rescue. In the event that the Debtor is placed under business rescue in terms of Chapter 6 of the Companies Act 2008, the conclusion of any compromise of the debt under such approved business rescue plan will not reduce the liability of any person that is bound as a surety for the obligations owed by the Debtor to the Creditor. Any such surety shall remain liable for the full amount of the debt that was due before such compromise.