In South Africa, Ster-Kinekor Theatres (SKT) has reportedly been offered US$16.2 million by Blantyre Capital and Greenpoint Capital to buy out the cinema chain.
According to BMA sources close to the deal, Ster-Kinekor Theatres (SKT) existing shareholders’ shares would be transferred to the investors as part of the transaction, giving Blantyre and Greenpoint Capital complete ownership of Ster Kinekor’s equities.
“The facility provides the quickest and most efficient way to exit Ster-Kinekor from business rescue and return it to solvency, while also attempting to maximise recoveries to pre-business rescue and ongoing trade creditors of the business, “said business rescue practitioner Stefan Smyth.
“The transaction will provide much-needed security to the 776 employees currently employed at SKT if the creditors approve it.” It will also restore SKT’s solvency and create a development platform for the company, backed by a strengthened balance sheet, allowing the company to reclaim lost growth during the Covid-19 global pandemic and expand where viable.”
To pass the rescue plan, 75 per cent of holders of creditors’ voting interests and 50 per cent of independent creditors’ voting interests is required.
To finalise the new terms, additional rental documents must be completed with landlords and any necessary permission from the South African Competition Commission or other regulatory approvals.
“If the plan is authorised and implemented, the goal of reorganising SKT’s affairs, business property, debt, and equity in a way that maximises the likelihood of the company remaining viable would have been achieved,” Smyth said.
