by Thinus Ferreira
The business rescue plan for South Africa's embattled Ster-Kinekor Theatres (SKT) has been approved, with 100% of shareholders and 99.75% of Sterk-Kinekor's creditors who voted in favour of the plan during two virtual meetings on Thursday.
Ster-Kinekor entered voluntary business rescue in January 2021.
Stefan Smyth, Ster-Kinekor Theatres business rescue practitioner announced that with the approval of the cinema chain's business rescue plan, a lifebuoy of R250 million will now be funnelled into Ster-Kinekor in the form of a debt facility from investors Blantyre Capital and Greenpoint Capital.
"The plan is binding on all parties, and implementation of the plan will now begin," says Stefan Smyth.
According to the Ster-Kinekor Theatres business rescue plan, the current shareholders are to transfer their Ster-Kinekor ownership over to Blantyre and Greenpoint Capital, meaning that the investors obtain full ownership of Ster-Kinekor's equity.
"Suspensive conditions of the purchase by Blantyre Capital and Greenpoint Capital include amended commercial lease agreements, to be agreed with landlords and any regulatory or other approvals where applicable."
"Once the suspensive conditions of purchase have been fulfilled and the funds transferred, the business rescue practitioner can file for a notice of termination of the business rescue proceedings with the Companies and Intellectual Property Commission."
"The business rescue practitioner can then terminate the business rescue proceedings and transfer the shares in Ster-Kinekor Theatres to the investors."
Stefan Smyth says "The trajectory of a bright new future for the business provides security for some 776 employees, suppliers and partners, and preserves a firm favourite form of entertainment option for South Africans, as Covid restrictions are reduced at this critical time".
