Raining Men Business Rescue Status: Chris Schoeman Funding Deal Sparks Hope

• Raining Men has been in business rescue since January 2019, despite being placed there nearly two years before an arbitrator ruled that the company had no claim to a share of Nkosana Makate's potential winnings from his legal battle with Vodacom over Please Call Me.
• Thomas Samons, who has run Raining Men's business rescue since 2019, has faced formal criticism for his handling of the company and was removed as BRP of three related state entities for incompetence.
• If a company remains in business rescue beyond three months, the CIPC requires status reports to be provided to each affected person and either a relevant court or the CIPC.

Raining Men has been stuck in business rescue since January 2019, despite being placed there nearly two years before an arbitrator ruled that the company had no claim to a share of Nkosana Makate's potential winnings from his legal battle with Vodacom over Please Call Me.

Raining Men has been stuck in business rescue since January 2019, despite being placed there nearly two years before an arbitrator ruled that the company had no claim to a share of Nkosana Makate's potential winnings from his legal battle with Vodacom over Please Call Me. This prolonged state of affairs raises questions about the effectiveness of the business rescue process in South Africa. According to Companies and Intellectual Property Commission (CIPC) records, Raining Men remains up to date with its status reports, but it is unclear whether the company has any assets or a viable plan for emerging from business rescue. The CIPC requires companies in perpetual business rescue to provide regular status reports to affected parties and either a relevant court or the CIPC, which may impact creditor claims.

Thomas Samons, who has run Raining Men's business rescue since 2019, has faced formal criticism for his handling of the company. An arbitrator found that he 'perpetuated' a fraudulent claim, and a court later removed him as business rescue practitioner (BRP) of three related state entities for incompetence. His licence was briefly suspended before being reinstated. This history of controversy raises concerns about Samons's ability to effectively manage Raining Men's affairs and develop a plan for the company's emergence from business rescue.

Business rescue was introduced through a 2011 amendment to the Companies Act as an alternative to liquidation. The process involves the appointment of a BRP, who has temporary control of a company's affairs, assets, and liabilities while a plan is developed to restructure it. Creditors are generally barred from pursuing claims while a company is in business rescue. However, if a company remains in business rescue beyond three months, the CIPC requires status reports to be provided to each affected person and either a relevant court or the CIPC.

Lawyers should note that if a company remains in business rescue beyond three months, the CIPC requires status reports to be provided to each affected person and either a relevant court or the CIPC, which may impact creditor claims.

Source: Original reporting via ITWeb