financially distressed

Chapter 6 of the Companies Act, 2008 (the Act) deals with business rescue.

‘‘financially distressed’’, in reference to a particular company at any particular time, means that—

  1. it appears to be reasonably unlikely that the company will be able to pay all of its debts as they fall due and payable within the immediately ensuing six months; or
  2. it appears to be reasonably likely that the company will become insolvent within the immediately ensuing six months;

Determine whether a company is financially distressed