http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.20Change: 0.11
R/$ = 11.08Change: 0.00
Au 1216.40 $/ozChange: -0.63
Pt 1339.00 $/ozChange: 4.00
 
 
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 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|Construction|Al|Jovner|Malcolm Lobban|Trevor Murgatroyd
Construction|Engineering|Eskom|Shell|||
construction|engineering|eskom|hedge-fund|sanyati|sanyati-holdings|shell|highway-corporate-services|construction-industry-term|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)
 
 
 
 
 
 
 
 
Other Construction News
After fully acquiring Nungu Trading 88 through a sale of shares and claims agreement, earlier this month, property group Texton Property Fund is now the sole owner of the 3 865 m2, AAA-grade office property Babcock House, in Bedfordview. Tenanted by Babcock Ntuthuko...
Marking one of the biggest private sector-led commercial property developments in Johannesburg’s inner city, property groups Attacq and Atterbury Property Holdings are a week away from the soft launch of the R1.3-billion Newtown Junction mixed-use development, in the...
Zukie Siyotula, Wandile Mseleku and Govert Rietema.
African investment management firm Thebe Investment Corporation has acquired a 15% stake in Burgan Cape Terminals, which was, last year, awarded a 20-year contract by Transnet National Ports Authority (TNPA) to develop and manage fuel storage and distribution...
More
 
 
Latest News
President Jacob Zuma would next month officially launch the Dube Tradeport, in Durban, as an industrial development zone (IDZ), the Department of Trade and Industry (DTI) announced on Friday. At the launch event, which was scheduled to take place on October 7, the...
JSE-listed York Timber Holdings on Friday said it expected its operating profit for the year ended June 30 to be between 25% and 30% lower than that of the prior year. As a result of the lower operating profit, combined with a 1% increase in the company’s biological...
Engineering solutions provider ELB Group has reported an 18% increase in turnover for the year, boosting overall income, from R1.9-billion in 2013, to R2.3-billion for the 12 months ended June 30. Describing this as “a satisfactory result, given the current difficult...
More
 
 
Recent Research Reports
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
 
 
 
 
 
This Week's Magazine
MANUFACTURING CAPABILITY Reliable Transformers designs and manufactures dry-type and oil-filled power and distribution transformers up to 3.5 MVA
While Ekurhuleni-based transformer manufacturer Reliable Transformers currently designs, manufactures and tests its products according to the SANS 780 specifications for distribution transformers and other applicable transformer specifications, it is working towards...
GHAREEB SAAD Kaspersky Lab products contain strong heuristics engines that monitor suspicious file execution to detect attacks
Global endpoint security solutions company Kaspersky Lab has introduced new measures to prevent cyber criminals from accessing sensitive data, alongside its malware-signature and heuristic device analysis detection methods. Threats to mobile devices have increased...
MICHAEL FLETCHER Real-time information available to government when citizens use publicly funded Wi-Fi networks will enable it to communicate with citizens and provide services
To ensure uptake and a positive impact, Wireless Fidelity (Wi-Fi) networks in cities must be provided at schools, community centres and commercial centres to enable citizens and government to access information that will improve access to and delivery of services....
Eco-estate Monaghan Farm, located near Lanseria airport, north-west of Johannesburg, has taken a new approach to modern living and sustainability with its 517 ha development, dedicated to farm living.
Forklift and lift-truck distributor Goscor Lift Hi-Reach launched the Genie SX-180, the tallest self-propelled super boom in Africa, in Johannesburg last month. “As the official distributor of the well-known Genie range of equipment in Southern Africa, we are pleased...
 
 
 
 
 
 
 
 
 
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