ARTICLE · 21 MARCH 2025

Wescoal Judgment On Post-Commencement Creditors – How The Appeal Proceedings Affect Its Enforceability.

Barnard Inc.

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The landmark Supreme Court of Appeal (SCA) decision in Mashwayi Projects (Pty) Ltd and Others v Wescoal Mining (Pty) Ltd and Others (2025 ZASCA 5) reshaped the business rescue landscape...

South AfricaLitigation, Mediation & Arbitration

Eloise Cilliers

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The landmark Supreme Court of Appeal (SCA) decision in Mashwayi Projects (Pty) Ltd and Others v Wescoal Mining (Pty) Ltd and Others (2025 ZASCA 5) reshaped the business rescue landscape by affirming the voting rights of post-commencement creditors (PCFs).

However, this precedent-setting ruling is now under appeal, raising significant legal and practical implications for business rescue practitioners (BRPs) and affected creditors. For an in-depth analysis of the original judgment, see our first article published on 11 February 2025: Do Post-Commencement Creditors Now Have a Say in Business Rescue?.

The Constitutional Appeal: What has happened so far?

On 18 February 2025, Salungano Group Ltd filed an application for leave to appeal to the Constitutional Court, seeking to overturn the SCA ruling. If successful, this appeal could reinstate the previous High Court order, which limited voting rights to pre-commencement creditors.

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