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Ster-Kinekor business rescue process delayed once again

The delay comes after receiving an updated investment offer from potential investors.
Ster-Kinekor's largest cinema complex in South Africa at Old Mutual's Gateway Theater of Shopping in Umhlanga. Image: Supplied

Ster-Kinekor’s road to recovery from the financial fallout of the Covid-19 pandemic has seen a slight delay as business rescue practitioner, Steyn Smyth requested the deadline for the publication of its business rescue plan be extended to January 21, 2022.

Smyth says the delay is due to receiving an updated investment offer from London-based  special situations investment firm, Blantyre Capital.

According to Smyth, the firm will be partnering with Cape Town- based specialist private credit investment management firm, Green Point Capital.

In October he made the same request – on similar grounds – to extend the publication of the business rescue plan, then to November 30, 2021.

Smyth said the coming weeks will be used to finalise the discussions around the transaction and to assess how creditors will be affected.

“The extension will therefore enable the business rescue practitioner to finalise the Business Rescue Plan but also to prevent the section 152 of the Companies Act, voting meeting, coinciding with the holiday period,” he said in a statement.

“We are very pleased to have received an amplified proposal from Blantyre Capital and Green Point Capital and look forward to dealing with the details in the next weeks so as to publish a plan for affected parties to subsequently vote on,” Smyth said.

The cinema group has been in business rescue since January this year.

Read: Ster-Kinekor enters business rescue

The once profitable business now exists as a shadow of its former self because of the Covid-19 pandemic which has forced it to close its doors for months.

Harsh lockdown restrictions forced the company to close from end of March 2020 to August 2020.  After resuming in August, the cinema group was forced to operate under stringent curfews and capacity limitations.

Despite the challenges, Ster-Kinekor has come up with creative ways to stay afloat and attract back its customers, such as reviving the drive-in movie concept earlier this year.

In early November, the company reported a stable recovery in cinema conditions as more and more people started going back to cinemas.

Read:

Ster-Kinekor  reports ‘stable’ cinema conditions, but remains in business rescue

Ster-Kinekor bets on drive-in cinema under the stars

The increase in attendance was largely supported by the uptake of vaccines in the country and new blockbusters hitting cinema screens.

However, with confirmation of the new Omicron Covid-19 variant and a surge in new infections ahead of the festive season, this peak part of the year for the cinema business could be at risk.

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The prophets of doom at the WHO predicted that Covid will turn Africa into a mortuary. The lack of resources like piped water, masks, sanitizer, health services, and inferior hygiene measures was supposed to lead to a Covid catastrophe in Africa. The WHO predicted that the cramped conditions in informal settlements will be a death trap.

The opposite is true. The Covid deaths per 100 000 of the population are 20 to 40 times higher in the wealthy Western nations than in the poorer African nations. Italy, UK, Spain and the USA experience the most covid deaths per capita, while covid fatalities are almost non-existent in Ethiopia, Kenya, Tanzania, Nigeria, and the DRC. There is a strong correlation between Covid deaths per capita and obesity. It is clear that Covid is a wealthy man’s disease.

This brings us back to the fact that co-morbidities determine the fatality risk of covid. Covid fatalities result from pre-existing diabetes, insulin resistance, and cardiovascular disease. It is a lifestyle disease, in other words.

The WHO and all those central planners with their lockdown measures should tell us how isolation and curfews will prevent and cure a lifestyle disease. The refined carbohydrates and sugary drinks are in the same isolated space with the patient, and the curfew forces him to be inactive, increasing his risk of death tenfold. The WHO itself is the primary health risk, for sure. Lockdowns serve no purpose, while it destroys livelihoods. State intervention in the free market is always counterproductive.

https://mises.org/wire/low-vaccination-rates-africas-covid-deaths-remain-far-below-europe-and-us

The WHO are like the UN, the Human Rights Commission, the Public Protector, Carl Niehaus and the EFF. They all have to justify their existence,their budget and their salaries … the only way to do it is by media exposure, statements and emails. That way the media give them the continued exposure and attention they crave, the oxygen they need to breathe. Otherwise we would all get along quite well without them and never knew they were gone. And they all know it, every single one of them. Their worst nightmare is folk may realise we don’t need them in our lives.

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