The idea with business rescue proceedings is to restore a company to a profitable entity and to avoid liquidation. Business rescue does not necessarily entail a complete recovery of a company in the sense that the company will have regained its solvency, its business restored and its creditors paid. Sometimes a business rescue process can result in a management buy-out or a takeover of the distressed company

The primary objective with business rescue provisions is to save the company as a going concern. If this is not possible, then the secondary object or goal is to restructure the company in such a way that shareholders and creditors will still get a return on their investments, which is better than the return that they would have received should the company be liquidated.