Ster-Kinekor Business Rescue Plan approved by creditors and shareholders

An overwhelming majority of 99.75% of creditors and 100 % of shareholders voted in favour of the plan. File Image: IOL

An overwhelming majority of 99.75% of creditors and 100 % of shareholders voted in favour of the plan. File Image: IOL

Published Mar 11, 2022

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The Business Rescue Practitioner, Stefan Smyth, announces that the Business Rescue Plan (‘The Plan’) for Ster-Kinekor Theatres (‘SKT’) has been approved and adopted by the requisite majority of creditors and shareholders, held at two separate virtual meetings.

An overwhelming majority of 99.75% of creditors and 100 % of shareholders voted in favour of The Plan. The Plan is binding on all parties and implementation of the Plan will now begin.

Suspensive conditions of the purchase by Blantyre Capital and Greenpoint Capital include amended commercial lease agreements, to be agreed with landlords and any regulatory or other approvals where applicable.

Once the suspensive conditions of purchase have been fulfilled and the funds transferred, the Business Rescue Practitioner can file for a Notice of Termination of the Business Rescue Proceedings with the Companies and Intellectual Property Commission, in accordance with the Companies Act 71 of 2008.

The Business Rescue Practitioner can then terminate the Business Rescue proceedings and transfer the shares in SKT to the investors. The strategic direction and running of the business will then revert to the management team and new owners of Ster-Kinekor.

Smyth noted, “I am delighted at the overwhelming support from creditors and shareholders for the Business Rescue Plan for Ster-Kinekor. The trajectory of a bright new future for the business provides security for some 776 employees, suppliers and partners, and preserves a firm favourite form of entertainment option for South Africans, as Covid restrictions are reduced at this critical time.”

BUSINESS REPORT

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