A critical analysis of the legal strength of creditor rights during the business rescue proceedings of a company operating in the South African aviation sector
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Date
2024
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University of the Western Cape
Abstract
This research primarily concerns the protection of creditor rights during the process of business rescue of a company operating in the South African aviation sector. The research also examines a specific international hard law instrument, the UNIDROIT Convention on International Interests in Mobile Equipment (2001), known as the Cape Town Convention (CTC) along with the application of the Protocol to the Convention on International Interests in Mobile Equipment on Matters specific to Aircraft Equipment (2001) (the Aircraft Protocol). This analysis investigates whether having adopted the CTC would change the legal nature of a creditor’s rights during the South African business rescue process. The research will further analyse two specific aspects, namely the general moratorium and the protection of property interests, which applies during business rescue against creditor claims. The analysis will establish if both aspects, the general moratorium and the protection of property interests, would apply to a creditor with an international interest (security right) in terms of the CTC. The outcome of this study will be to determine whether a creditor with an international interest will be in a more secure position compared to a creditor merely having a security right established under South African law during the business rescue proceedings of a debtor operating in the South African aviation sector.
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Keywords
Business rescue, Creditor rights, General moratorium, Property interest, Cape Town convention
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