Transcript High Level Presentation - Creditors meeting

High Level presentation of the
business rescue plan of the
Stedone Group
Presented by KJ Gribnitz
To the Creditors meeting held on the
24 April 2013
Why were various companies placed in
business rescue & what action will be taken?
Was managed as a group
regardless of it being
separate companies
Sureties signed for other
group companies
Many Intergroup loans
which can be demanded
Assets and liabilities in
different companies
Main business units carry risk
for all other entities
Reorganise the assets and
the focus operations on
making money again
Protect the assets & contract
while in BRP
Place a moratorium &
may compromise debt
Restructure the funding of
the balance sheet and
Instil financial discipline
Introduce strict capital
management techniques
Increase the current
profitability of contracts
Dispose of non core assets &
fixed costs
Consolidate the assets where
necessary
Create a consolidated
group with equity in a new
holding company
Overview of the different phases and the time
lines of the turnaround plan
0 to 4 months
1 to 6 months
1 to 9 months
4 to 9 months
Phase 1
Phase 2
Phase 3
Phase 4
Business Rescue
Restructure Operations
Corporate Re-organisation
Entrenchment Phase
Compliance with Act
Improve financial reports
Consolidate the group
Establish a new culture
Stop SARS hold on funds
Merge skills & contracts
Corporate Governance
Obtain new work
Stop ongoing losses
Resource optimization
Create risk committee
Re-launch the company
Raise working capital
Re-focus the business
Compliance with Act
Prepare 3 year plan
Communication plan
Create incentive scheme
Appoint a new board
Hand over the company
Remuneration of the SBRP for the Stedone Group
• Stedone Developments (Pty) Ltd (In Business Rescue)
• R 1 600,00 per hour exclusive of VAT with a maxim of R 19 200,00 per day exclusive of VAT;
• Stedone Civils (Pty) Ltd (In Business Rescue)
• R 1 600,00 per hour exclusive of VAT with a maxim of R 19 200,00 per day exclusive of VAT;
• Stedone Investments (Pty) Ltd (In Business Rescue)
• R 1 200,00 per hour inclusive of VAT with a maxim of R 14 400,00 per day exclusive of VAT;
• Hazycrest (Pty) Ltd (In Business Rescue)
• R 200,00 per hour exclusive of VAT with a maxim of R 2 400,00 per day exclusive of VAT;
• FMG Admin Services CC (In Business Rescue)
• R 200,00 per hour exclusive of VAT with a maxim of R 2 400,00 per day exclusive of VAT;
• Sted Stores CC (In Business Rescue)
• R 200,00 per hour exclusive of VAT with a maxim of R 2 400,00 per day exclusive of VAT;
• Dura Industrial Park CC (In Business Rescue)
• R 200,00 per hour exclusive of VAT with a maxim of R 2 400,00 p/h inclusive of VAT; -
• Contingent upon the companies paying salaries and wages for the month of April 2013, and hours will be
charged as a total and allocated to the various companies as above.
Thank you
Karl Gribnitz