How Ster-Kinekor dodged the bullet
As a result of the Covid-19 pandemic which resulted in economic restrictions, Ster-Kinekor’s board of directors launched a pre-emptive move to determine whether the group was in financial distress and whether a voluntary business rescue was the best course of action.
After considering an array of factors, it resolved that the company should commence business rescue proceedings.
BizCommunity reports that this allowed Ster-Kinekor to experience a period of relief while proceedings were underway.
The timing of this decision also ensured that the business rescue proceedings commenced while Ster-Kinekor was still rescuable.
BizCommunity reports that it received an offer from Blantyre Capital Limited, an English investment firm, and Greenpoint Specialised Lending, a specialist private credit investment management firm headquartered in Cape Town, which informed the business rescue plan.
It was published on 28 February 2022 and adopted by the requisite percentage of creditors and shareholders the following month.
Webber Wentzel assisted and advised Ernst & Young business rescue practitioner, Stefan Smyth, on all aspects of the proceedings.
The main transaction had a deal value of R250m and involved the refinancing and restructuring of Ster-Kinekor’s debt, as well as the purchase of 100% of Ster-Kinekor’s shares in by Blantyre Capital Limited and Greenpoint Specialised Lending.
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.
