Our Track Record
FOLLOW EBT’s SUCCESS
Engaged’s Track Record
March – July 2016
Business Review – Joinery business, KwaZulu Natal
Independent Business Review (requested by ABSA) of a KZN-based joinery business with a turnover of approximately R200m. Subsequent appointment as turnaround officers. Following commencement of turnaround mandate, pervasive large scale fraud was uncovered and assessed no reasonable prospect of rehabilitation in light of the real extent of losses that the company was experiencing. Under Ian’s guidance, the company was put into voluntary liquidation. ABSA recovered their full exposure (a debtor finance facility of +/- R20m) within months.
January 2017 – Present
Turnaround – Coal mining operation, Mpumalanga
Turnaround & partial wind-down of a Mpumalanga/KZN based coal and anthracite mining operation (10 companies). Bank exposure +/- R18m. The companies were placed in business rescue under Ian Fleming’s supervision in May 2017. The business rescue started out as a managed wind down (sale of assets) in which the bank was likely to receive 100c in the Rand. In the face of lower-than-expected values being realised on auction for key properties sold as part of the plan, the scope of the rescue had to be extended to take control of an associated group of companies via a complex process of litigation, in order to set up a mining operation and realise the assets held by those companies. With the blessing of the group’s creditors, EBT provided the majority of the litigation- and other funding that the rescue required in order to succeed. Despite the prolonging of this matter due to litigation, creditors are still due to receive 100c/Rand.
Recovery – Johannesburg security company
Recovery of approximately R22m (for ABSA) from a Johannesburg security company. Managed the wind-down of the debtor book (under ABSA debtor finance facility) and packaged/marketed the company’s contracts for sale. Recovered 100% of ABSA’s exposure.
Business Rescue- Crushing and Screening Company
Commenced business rescue of a retail franchise in Newcastle, KZN. Business Rescue plan approved in April 2018. The success of the business rescue plan allowed the secured creditors to recover a large portion of their exposure to the group of companies, which in turn resulted in the secured creditor advancing additional PCF to assist with the turnaround of the franchise. Substantial implementation was filed in October 2019 after the largest creditor had been repaid in excess of 70% of its debt.
Business rescue – Game relocation business near Newcastle, KZN
Commenced business rescue of a game relocation business near Newcastle, KZN. Business rescue plan was approved in July 2018. This matter was the first business rescue for EBT where First National Bank was the major creditor. Secured creditors have already been settled to a large extent via sales of non-core assets, and the company appears to be on track towards solvency and profitability.
Business rescue – Gold Mine
EBT purchased the claims of creditors in a gold mining company liquidation. EBT then obtained a court order which suspended the liquidation, and the company was placed into business rescue (under an independent practitioner). EBT subsequently applied for a declarator in the Pretoria High Court for the liquidation to be set aside (as opposed to “suspended”), and for the mining right to be declared valid. The business rescue plan was approved in late 2020, and the mining right was successfully executed in early 2021. The mine was sold in line with the business rescue plan, mining activity has recommenced, and creditors are likely to be settled in line with the approved business rescue plan.
Turnaround – Manufacturing Company
Commenced informal turnaround assistance to a manufacturing company with a turnover of approximately R120m. With a management team that weathered a storm of adversity since being placed in control, the role of EBT was to provide strategic operational insight and assistance and exercise a duty of care in favour of the key creditor. The key creditor was guided by EBT through advice and insight into the status quo and the way forward, and by April 2020 EBT concluded its mandate with the company has turned the corner towards sustainable profitability.
Business Rescue- Crushing and Screening Company
Commenced business rescue of a Mpumalanga-based crushing and screening company operating in the coal mining industry. The business rescue plan was approved by creditors in November 2018. This matter is the first business rescue for EBT where Nedbank is the major creditor. It is currently envisaged that secured creditors will receive 100c/Rand, unsecured creditors 40c/Rand and that the rescue will be substantially concluded within 24 months of commencement. With the business rescue perceived by many as a no-hoper at commencement, Nedbank has already been repaid more than 90% of its claim.
Business Rescue- KZN-based Engineering Company
Commenced business rescue of a KZN-based engineering company to which three of the major banks had exposure. A key element of the turnaround was tax compliance, which was achieved within a month of the BR plan having been approved. This enabled the company under our guidance to benefit once again by having the ability to be awarded tenders from corporations and parastatals. Substantial implementation was filed in 2021.
Business Review – Retail Company
Assisted one of the major investment banks with an independent business/financial review into the dealings of a retail company allegedly in debt to the bank for an amount of some R600m. The bank applied for liquidation of the debtor company shortly after completion of our review. The matter was fraught with hostilities, complexities and sensitivities which required careful navigation.
Business Rescue – Property development Company
Appointed as joint rescue practitioners (Ian Fleming and Peter Gordon) to undertake the business rescue of a property development company with assets in excess of R250m, in which a JSE-listed REIT has recently acquired the claims of the major creditor. As of June 2021, the majority of the assets were sold, and the business rescue completion is imminent in line with the approved business rescue plan.
Business Rescue – Telecommunication & Fibre Company
Appointed as the joint business rescue practitioners (Ian Fleming and Peter Gordon) of a telecommunication and fibre company with creditor exposures in excess of R130m. The business rescue plan was approved in June 2019 with secured creditors expected to get 100c/Rand, and unsecured creditors between 24c and 34c/Rand. The business rescue plan envisaged a managed wind-down of the company, and the majority of assets were sold in accordance with the requirements of the plan within 8 months of adoption thereof, with creditors’ dividend pay-outs having commenced as envisaged by the plan. The final tranche of assets was sold in April 2020 and all classes of creditors were paid the dividend envisaged by the business rescue plan.
Business Rescue – Medical Aid Scheme
Appointed as curator (Ian Fleming assisted by Ian Fuller) of a medical aid scheme with approximately 28,000 members and beneficiaries. By April 2021 (after 20 months under curatorship) the solvency ratio of the scheme had improved from 6,6% at commencement of curatorship, to 26,7%. Achievement of the mandatory solvency ratio of 25% (our main KPI) was achieved well ahead of the target envisaged by the turnaround plan. At the AGM in June 2021 new trustees were appointed, upon which the curatorship ended.
Business Rescue – PSV Holidings Ltd.
Appointed as joint business rescue practitioners (Ian Fleming and Peter Gordon) of PSV Holdings Ltd, an industrial holding company listed on the alternative exchange of the JSE. Substantial implementation of the business rescue plan is imminent as of June 2021.
Business Rescue – Consolidated Steel Industries (Pty) Ltd.
Appointed as business rescue practitioners (Sello Mkhondo and Ian Fleming) of Consolidated Steel Industries (Pty) Ltd. With creditors in excess of R1 billion and pre Covid-19 turnover of circa R2,6 billion, the company was a leading national role player in industrial roofing and stainless steel & aluminium distribution. Supported by Deloitte Restructuring and Deloitte Capital in the business rescue, the business rescue plan was approved on 27 August 2020 by 98% of creditors who voted, just 6 weeks after the company went into business rescue. Following ongoing consultation with key creditors and employee representatives, the business rescue plan was already implemented to a large extent by the time it was approved and adopted. A deal for the sale of the majority of the assets of Stalcor, one of the two primary CSI divisions, was concluded in October 2020, just two months after the approval of the business rescue plan. The sale of the Stalcor assets enabled the BRPs to fund the losses incurred by the other primary division between October 2020 and January 2021 as a result of national steel supply shortages. The other primary division, Global Roofing Solutions, was sold to Rockwood Private Equity effective 1 July 2021, having been returned to consistent profitability by the business rescue team and management in February 2021.
EBT was appointed to the Turnaround and Value Add Panel of the Public Investment Corporation (PIC).
Business Rescue – Walro Flex
EBT was appointed as the business rescue practitioners (Warren castle and Wilhelm Jonker) for Walro Flex, an automotive cable manufacturing company with creditors of approximately R165m. Immediately prior to business rescue the company had no revenue and manufacturing was at a standstill. The BRPs successfully negotiated terms to restart the operations in cooperation with management, customers, and suppliers. By restructuring key financial and operational functions of the company, the company has, without any further investment or funding, managed to generate turnover of more than R8m per month, which is increasing consistently. Orders continue to grow steadily and the approval of R15m in post commencement trade facilities is imminent. The value of the company has accordingly increased significantly since the start of the business rescue process and numerous jobs have been saved.
Business Rescue – CC Cranes Group of Companies
Appointed as joint business rescue practitioners (Johan du Toit and Ian Fleming) of CC Cranes group of companies, a crane hire business instrumental in the construction of large wind farms, in which Investec is the major creditor and total creditors amount to circa R450m. The business rescue plan was published in April 2021 and presently envisages a return of 100c/Rand to all creditors including the shareholder.
Restructuring & Turnaround – SAFE Farm Ventures
Appointed to assist with the independent restructuring and turnaround of SAFE Farm Ventures, a prominent fruit farming and exporting enterprise in the Western Cape with creditors in excess of R400m. An unexpected liquidation application was served by a minor creditor shortly after commencement, which ultimately required a business rescue court application to be launched on an urgent basis. The draft business rescue plan was compiled in 3 days in order for it to form part of the court application, in which the employees were the applicant. The court ruled in favour of the applicant and the company was placed in business rescue under our control (Warren Castle and Liam Royce). It is understood that this is the first matter in which ABSA Capital agreed to fund the cost of the legal action to place a company in business rescue.