Ster Kinekor exits business rescue after R250m injection
Cinema giant Ster Kinekor has successfully exited the business rescue process after raising R250 million in capital.
The company went into voluntary business rescue in January 2021 after its income was disrupted by the hard lockdown during the height of the Covid-19 pandemic and a lack of new blockbuster content, due to delays in the release of movies out of the UK and USA.
The company, which was founded in 1969, managed to raise a capital of R250 million from Blantyre Capital in the UK and South African based asset manager Greenpoint Capital.
The two will effectively take over the company.
Business rescue practitioner Stefan Smyth says all regulatory requirements for the transaction were fulfilled, including approvals from the Reserve Bank and the Competition Commission.
“Not only does this investment give the business a solid foundation on which to build its future, it has also meant that some 800 jobs have been retained and a dividend has been paid to creditors as proposed in the accepted plan.
"Lease agreements have been renegotiated with the landlords which were a material condition precedent for the conclusion of the transaction. Trade creditors will further benefit from on-going trading with the company.”
Smyth says they have begun to see increase in cinema attendance since the release of Top Gun: Maverick and are awaiting the release of Avatar: The Way of Water and Black Panther 2 Wakanda Forever.
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