Jul 18, 2012
Creditors to vote on Sanyati’s future next weekBack
Eskom|Hedge Fund|Sanyati|Sanyati Holdings|Highway Corporate Services|Construction|Al|Jovner|Malcolm Lobban|Trevor Murgatroyd
© Reuse this
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
Updated 6 minutes ago Despite an uptick in year-on-year manufacturing output, the outlook for the manufacturing sector remained subdued, banking group Nedbank’s economic unit said on Tuesday. Against the market consensus of a 2.1% contraction and a 3.3% decline in September, Statistics...
Updated 1 hour 41 minutes ago Airline passenger demand was expected to rise more than 30% in the next four years, the latest report by the International Air Transport Association (Iata) revealed on Tuesday. The Iata Airline Industry Forecast 2013 to 2017 showed that, by 2017, there would be a...
Updated 1 hour 41 minutes ago Following her surprise resignation earlier this week, ArcelorMittal South Africa CEO Nonkululeko Nyembezi-Heita has been appointed chairperson and nonexecutive director of the JSE, replacing outgoing chairperson Humphrey Borkum. Nyembezi-Heita, who had served as...
Recent Research Reports
Defence 2013: A review of South Africa's defence industry (PDF Report)
Creamer Media’s 2013 Defence Report examines South Africa’s defence industry, with particular focus on the key players in the sector, the innovations that have come out of the defence sector, local and export demand, South Africa’s controversial...
Road and Rail 2013: A review of South Africa's road and rail infrastructure (PDF Report)
Creamer Media’s Road and Rail 2013 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...
Liquid Fuels 2013 (PDF Report)
Creamer Media’s 2013 Liquid Fuels report examines South Africa’s liquid fuels market, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing,...
Projects in Progress - Second Edition (PDF Report)
Creamer Media’s second Projects in Progress supplement considers some of the major project developments under way, including high-profile energy and transport projects, as well as a few of the lower-profile public and private developments. What remains apparent is...
Water 2013: A review of South Africa’s water sector (PDF Report)
Creamer Media’s Water 2013 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.
Canadian Mining Roundup for June 2013 (PDF Report)
The June 2013 roundup includes details of the development of TSX-V-listed Aldridge Minerals’ flagship Yenipazar polymetallic project, in Turkey; the Canadian Nuclear Safety Commission’s renewal of Cameco’s uranium mining licence pertaining to the Cigar Lake...
This Week's Magazine
Mitsubishi Motors South Africa (MMSA) has introduced a 4x2 derivative of its Pajero Sport sports-utility vehicle (SUV), which will give it access to a substantial slice of the full-size SUV market, where it will compete with the likes of the Ford Everest, Chevrolet...
South African Energy Minister Ben Martins has affirmed that the government wants the country to be globally competitive in the nuclear sector. "Our responsibility has always been ... to ensure that, in nuclear energy, South Africa can compete with the rest of the...
Mercedes-Benz South Africa (MBSA) president and CEO Dr Martin Zimmermann describes the new S-Class as “a special place to be”, with the car creating a sense of “wellness” once you are seated inside the German brand’s flagship model. It is difficult to argue...
Water scarcity and water-quality issues are broadly recognised and understood in most political, business and civil organisations in South Africa, but solving water issues will require wide and continuous action in catchments and municipalities by organisations and...
Work is well under way on the R212-million Imvutshane dam, 30 km north-west of Stanger, in KwaZulu-Natal, which is a key link in supplying people in rural Maphumulo with a reliable source of safe drinking water.