Jul 10, 2012
Sanyati liquidates construction business unitBack
Construction|Engineering|Flow|Projects|Sanyati Holdings|Flow|Alta Jovner|Malcolm Lobban|Trevor Murgatroyd
© Reuse this
This followed the conclusion of appointed business rescue practitioner Trevor Murgatroyd that there “no longer exists a reasonable prospect of rescue” of Sanyati, which was dependent on the trading, income and profitability of SCE&E.
“The business is no longer able to continue operating as it can no longer meet its critical payment commitments. Under the circumstances, SCE&C is factually and commercially insolvent and is clearly no longer able to trade without independent financial assistance and unable to pay its debts,” the company said in a statement.
Sanyati’s existence is predominantly dependent on the income and profitability of the SCE&C, Malcolm Lobban, former Sanyati Holdings CEO and SCE&E MD, said in an affidavit in support of the business rescue application.
Lobban implemented business rescue proceedings in May as the company entered financial distress when a number of government departments failed to settle in excess of R70-million for contracts completed over a year ago.
The business rescue practitioner tabled a proposed overall business restructuring plan, which included rationalising expenses, ringfencing viable projects, disposal of parts of the business, disposal of certain contracts, entering into of joint ventures in respect of certain contracts, cancellation of unviable contracts and raising of capital.
But, the company said that the “absolute minimum” critical short-term cash flow requirements to keep the business afloat while implementing the rescue plan would reach about R32-million.
Sanyati Holdings would remain under business rescue proceedings for the time being, but no indication as to how long was given.
Meanwhile, shortly after the resignation of Sanyati CEO Lobban in June, CFO and financial director Alta Jovner resigned, effective July 6.
Edited by: Mariaan Webb© Reuse this Comment Guidelines (150 word limit)
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
Forest products group Sappi has confirmed the selection of its 25 MW biomass-to-power project, to be erected at its Ngodwana mill, in Mpumalanga, as a preferred bidder under the South African government’s Renewable Energy Independent Power Producer Procurement...
Information and communications technology (ICT) distributor DCC is making Windows- and Android-operating systems tablets available through retailers and education equipment suppliers to provide school children with affordable, high-performance education tools. The...
Another cement manufacturer is set to enter the Ugandan market, raising hopes that prices will come down and spur growth in the construction industry. National Cement, a Kenyan manufacturer, has unveiled plans to invest $195-million in a new manufacturing plant in...
With growth rates exceeding that in the developed world – at an average of between 4% and 5% between 2002 and 2014 – African countries provide investors with ample reason to tap into booming consumer demand says Manufacturing Circle executive director Coenraad...
The South African Chamber of Commerce and Industry’s (Sacci’s) Business Confidence Index (BCI) decreased by 3.7 index points month-on-month to 89.1 in March.