I am the sole member of a cc and a 100% shareholder of a company and, in my personal capacity and on behalf of the cc & company signed an AOD (acknowledgment of debt) in order to try and reach a settlement with a creditor but I have thus far failed to meet payments and myself and the two businesses have lost all value and no longer have any assets, the creditor is now calling in on the AOD and I need to respond within 10 business days - what is my way forward.
I have the tools to create the business to service the debt and I signed an AOD believing I would meet the payments, but, delays in establishing the business and environmental conditions beyond my control have delayed the intialization of the project whcih would have created the income to service the debt, I still believe I can service the debt given more time.
what are the prospects of the business turning into a profitable business?
I was a mining equipment technology development company and grew from R1 million to R6 million turnover in first 2 years trading and built and movable asset base of R2.5 million using loans plus I filed 9 patents.
Thx that mean that the credit act is not applicable
is there any change of you turning the business around?
The potential business using the patents will grow beyond R20 million in the next 2 years so prospects are good and I have already started
Good then you must apply for business rescue in terms of the new companies act.
this process suspend all legal action during the rescue proceedings
the only negative aspect would be that the business rescue practitioner is in control of the business for the duration thereof
Any pointers on whom I contact for this
in what province are you?
Unfortunately I am not allowed to refer attorneys, but you can initiate the process yourself, by lodging a descision ito section 129 of the companies act at the companies office.
yes sorry pick it up from other screen
try mr acker at www.rgprok.co.za
Advocate of the High Court of South Africa
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