http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.49Change: -0.02
R/$ = 11.88Change: 0.20
Au 1214.08 $/ozChange: 19.92
Pt 1149.50 $/ozChange: 15.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Jul 18, 2012

Creditors to vote on Sanyati’s future next week

Back
Construction|Engineering|Eskom|Hedge Fund|Sanyati|Sanyati Holdings|Shell|Highway Corporate Services|Services|Al|Jovner|Malcolm Lobban|Trevor Murgatroyd
Construction|Engineering|Eskom|Shell||Services|
construction|engineering|eskom|hedge-fund|sanyati|sanyati-holdings|shell|highway-corporate-services|services|al-person|jovner|malcolm-lobban|trevor-murgatroyd
© Reuse this



Embattled construction group Sanyati’s future – whether it would continue business rescue proceedings or follow its subsidiary into liquidation – would rest on the vote of its creditors, at a meeting scheduled for July 25.

In a business rescue plan, published on Wednesday, appointed business rescue practitioner Trevor Murgatroyd stated that there seemed to be no benefit in continuing the rescue plan, as the company would be unable to trade its way out of its current financial position.

“There does not appear to be any material benefit to the creditors of Sanyati by adopting the business rescue plan, as opposed to the benefits that would be received by creditors if Sanyati were to be placed in liquidation,” the plan stated.

The company would continue to incur costs by remaining in business rescue, the proceedings of which cost R2 500 an hour, to a maximum of R25 000 a day. This excluded the expenses incurred to carry out and facilitate the undertakings of the business during proceedings.

Sanyati and subsidiary Sanyati Civil Engineering and Construction (SCE&C) were placed under business rescue after they entered financial distress when a number of government departments failed to settle in excess of R70-million for contracts completed over a year ago.

Sanyati is dependent on the trading, income and profitability of SCE&E, which is being liquidated.

The tabled business rescue plan would, in the interim, continue to hold Sanyati under business rescue and place a moratorium on all claims against the group, while awaiting the completion of the liquidation of SCE&C.

The plan outlined that the proceeds from the liquidation would be allocated to business rescue expenses, any unpaid post business rescue employee claims, payment of preferential claims and payment of concurrent creditors. The remaining surplus, if any, would be distributed to the shareholders.

Shareholders included, besides others, Sanyati executive share incentive scheme, Sanyati 2007 acquisition trust, Eskom pension fund, 36ONE Hedge Fund and Agulhas nominees.

Ironwood Trustees would take control of Sanyati’s management and administrative functions, replacing Highway Corporate Services.

Murgatroyd would also attempt to sell the listed shell of Sanyati Holdings once the claims against Sanyati have been settled or compromised.

The business plan noted that the June salaries of CEO Malcolm Lobban and CFO and financial director Aléta Jovner were not paid and would be treated as post commencement finance.

Lobban and Jovner resigned in June and July, respectively.
 

Edited by: Mariaan Webb
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
 
Latest News
South Africa’s crude steel production dropped by a sizeable 17.2% year-on-year to an estimated 530 000 t in April, amplifying a global trend that saw world steel production decline by a comparatively marginal 1.7% to 135-million tons in the fourth month of the year....
The Treasure the Karoo Action Group (TKAG) on Friday called on government to delay publishing final regulations and issuing rights for shale gas exploration in the Karoo, until a 24-month strategic environmental assessment (SEA) has been concluded. TKAG CEO Jonathan...
More
 
 
Recent Research Reports
Steel 2015: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2015 report provides an overview of the key developments in the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon...
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
 
 
 
 
 
This Week's Magazine
While economic forecasts for the African continent are most favourable, African airlines may not be able to benefit from the expected growth in the region’s gross domestic product (GDP), International Air Transport Association VP: Africa Raphael Kuuchi has warned....
The Automotive Production and Development Programme (APDP) will need to change substantially post 2020, says Metair Investments South African operations COO Ken Lello. “We must not make tweaks. We have to change. What we are doing is not sustainable.”
Banking group Absa’s forecast is for the rand to end the year at around R13 against the dollar, weakening further to R13.50 by 2016, says Absa sectoral analyst Jacques du Toit. He warns that possible interest rate hikes in the US may see capital being pulled from...
The Dispute Resolution Centre at the Bargaining Council for the Civil Engineering Industry (BCCEI) is now open to handle party-to-party disputes. The BCCEI represents the interests of all level four to nine Construction Industry Development Board companies.
FREDRIK JEJDLING Sustainability becomes an important part of a business’ decision-making process
Communications technology firm Ericsson sub-Saharan Africa head Fredrik Jejdling says the company’s commitment to sustainability and corporate responsibility has been integrated into all facets of its operations, which has provided it with sustainable revenue...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96