Ster Kinekor’s business rescue plan has been approved by the group’s creditors and shareholders.
The plan will see investors Blantyre Capital and Greenpoint Capital take over 100% of the company’s shares for a R250 million senior secured debt facility.
“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,” the group’s business rescue practitioners (BRP) said.
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 BRP 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 BRP can then terminate the business rescue proceedings and transfer the shares in Ster Kinekor Theatres to the investors. The strategic direction and running of the business will then revert to the management team and new owners of 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,” the BRP said.
Ster-Kinekor entered business rescue at the end of January 2021 on the back of the Covid-19 pandemic and prolonged lockdown restrictions.
The group said that up until February 2020, the business was profitable and highly cash generative, with good prospects of future and ongoing profitability from the pipeline of blockbuster film content that had been scheduled.
From a trading perspective, early February 2022 weekly attendance performance appears to have returned to pre-holiday season levels, which were good.