On 19 February 2019, the African Global Group of companies (better known by its trading name, Bosasa) reported that it intends applying for its voluntary liquidation.

It reported that this decision was taken by the board of directors of Bosasa after being notified by its bankers that the groups’ bank accounts would be closed, with effect from the 1st of March 2019.

Can one proceed with legal action against a surety where the principal debtor is under business rescue?  A recent judgment considered this question.

Briefly, the facts were that the Plaintiff issued summons against the Defendant based on a suretyship which the Defendant executed, binding himself for the debt of two entities - both of which were in liquidation.