LML4806 Assignment 2 (COMPLETE ANSWERS) Semester 1 2024

LML4806 Assignment 2 Semester % TRUSTED workings, explanations and solutions. For assistance call or W.h.a.t.s.a.p.p us on +/ 2/ 5/ 4 /7 /7 /9 /5 /4 /0 /1 /3 /2 . Question: 1 Coffee Bean Lovers (Pty) Ltd (‘the company’) buys coffee from Kenya and distributes it to different coffee shops in South Africa. Due to an infestation of bugs at one of the coffee plantations, the company will not be able to get deliveries of coffee from Kenya for the next three months. Instead, the company will have to import coffee from Uganda at a much higher cost. As a result, the company’s cash flow will be affected severely. Pat, one of the directors of Coffee Bean Lovers (Pty) Ltd, has informed Jane and Steven, two of the employees of the company, that the company may face serious financial difficulties in the next three to twelve months and that they will not be paid their salaries for the next two months as the company will first have to pay other creditors. Jane and Steven have heard about business rescue, and are of the view that business rescue 4 proceedings may be appropriate in the circumstances to assist the company to survive and to ensure that they will still be paid their salaries. Jane and Steven approach you for advice on business rescue proceedings. With reference to the relevant statutory provisions: 1.1 Explain what business rescue is and indicate the circumstances in which business rescue proceedings may be used. (5) 1.2 Advise Jane and Steven how business rescue proceedings may be commenced and indicate whether Jane and Steven, in their capacity as employees, would have any means of ensuring that the business rescue proceedings are commenced. (5)