Business rescue was introduced by the 2008 Companies Act and commenced in 2011. It provides for a regulated process in terms of which a company in financial distress is allowed the opportunity of engaging with its stakeholders and creditors to find a solution, which generally would result in the recue or restructuring of its financial affairs.

In terms of Section 153 (1)(b)(ii) of the Companies Act, a creditor who votes against the adoption of a business rescue plan runs the risk of having their claim purchased by another party at a value of what the creditor would have received on liquidation of the company.  In the terms of the bankruptcy laws of the United States of America this procedure is referred to as a "cram down" which is imposed on creditors in business rescue situations.