DCDM | Credentials

As soon as we were appointed as Receiver managers for the manufacturing company, we conducted a high spot review to assess the financial situation of the company. Our experts in corporate recovery proceeded to a thorough analysis of the viability of the company.

Two options were possible : either we try to sell the company as a going concern and derive higher proceeds from the sale of the business or else we liquidate the company and proceed to the disposal of assets and settlement of liabilities. We had no firm offers as far as selling the business as a going concern and in view of the financial hardship of the company we had no choice to stop production and started to work on a compensation package for the employees in line with Labour Act. Throughout the receivership process, we liaised directly with employees, trade unionists, the Ministry of Labour to come up with the best possible solution for all parties concerned. We sorted out all industrial relations issues together with the help of lawyers and bankers.

We successfully defended litigation to secure receipts from debtors and other disputes. Since the company was still trading, we liquidated all company stocks locally and internationally. We also collected cash proceeds from debtors and secured the assets of the manufacturing company.

The receivership procedures were undertaken in compliance with the Companies Act and the Labour Act statutes.


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