Jul 10, 2012
Sanyati liquidates construction business unitBack
Construction|Engineering|Flow|Projects|Sanyati Holdings|Construction|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
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...
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
South African State-owned defence industrial group Denel has announced its fourth consecutive year of profits. The group's results for the financial year 2013/2014 were recently announced at its head office in Centurion, south of Pretoria. Revenues grew by 17%, net...
There is little opportunity for JSE-listed infrastructure company Group Five to grow shareholder value in the domestic market, says CEO Mike Upton. He says value can still be found in the private sector, in the renewable and industrial power sector, as well as in...
The National Association of Automobile Manufacturers of South Africa (Naamsa) has announced the event dates of the 2015 Johannesburg International Motor Show (JIMS). The event will take place from October 14 to October 25, 2015, at the Johannesburg Expo Centre, Nasrec.
UK engineering support services provider Babcock is set to deliver the largest order of global truck manufacturer DAF’s truck tractors in Southern Africa to bulk carrier road-based logistics company Ngululu Bulk Carriers (NBC), with 133 trucks to be delivered in...
Digital radio communications in the African local government space can open up the world, but have many challenges to overcome, notes integration and migration of legacy radio communications infrastructure with digital mobile radio company Emcom Wireless head of...