Ster-Kinekor offered R250m lifeline
SA’s largest cinema chain, Ster-Kinekor, could soon be out of business rescue and back to normality after a R250m offer was made for the business.
A Business Day report says London-based investment firm Blantyre Capital and Cape Town-based Greenpoint Capital are hoping to buy 100% of lossmaking Ster-Kinekor, which has been in the form of bankruptcy protection since January 2021.
The interest by the two investment houses was expressed in December, but the deal has only been finalised after a protracted and challenging negotiation with creditors.
Ster-Kinekor’s business rescue plan and the details of the purchase offer were released this week, after creditors had granted business rescue practitioners numerous extensions.
The plan and purchase price needs to be voted on by creditors – including Rand Merchant Bank and landlords – and requires approval by a 75% majority of the main creditors.
If given the go-ahead, landlords will receive 5c for every rand they are owed.
Suppliers, including landlords, who are owed a collective R140m, will earn about R7m.
The business rescue practitioners will earn R10m in ‘success and retention fees’ over and above their payment, according to the rescue plan.
Article disclaimer: While we have made every effort to ensure the accuracy of this article, it is not intended to provide final legal advice as facts and situations will differ from case to case, and therefore specific legal advice should be sought with a lawyer.
