Transcript ABASA presentation at INSOL feedback session

ABASA – Association of Business Administrators of South Africa
ABASA
• Origin
• Mission
• Interim Executive
• Status
2
©2004 Deloitte & Touche
ORIGIN
ABASA is an outcome of the Task Group for
Organising the Turnaround and Business Rescue
Industries
Work Group of the Industry Task Group
(Supported by 80 Advisory Group members):
Seated: Stephan Claassen (FNB), Lawrence Ngobeni (University of Pretoria - alternate for Professor David Burdette)
(Secretary), Themba September (Corporate Renewal Partners) (Chairman), Mervyn King (Brait), Ricardo Graham
(Maximus Turnarounds).
Standing: Inus du Preez (FNB), Sarel Lategan (Standard Bank - alternate for Christo Faul), John Evans (Deloitte),
Robin Taggart (Nedbank), Patrick Daly (Daly Incorporated), Kevin Cochrane (Nedbank - alternative for Anna Isaac),
Krisjan Barnard (Absa - alternative for Trevor Murgatroyd), Jan van der Walt (Corporate Renewal Partners), Les
Matusen (Credit Management Solutions - alternate for Rowan Gordon), Jan Bicker-Caarten (RMB), Martin Leigh (RMB),
David Gewer (Werksmans).
Grass-roots involvement from 100 participants
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from all constituencies in the turnaround
and
Absent: Paul Winer (Werksmans), Michael Vacey-Lyle (FNB).
©2004 Deloitte & Touche
business rescue industries in South Africa
ORIGIN
The Task Group assessed organised industry
in terms of the model describing the timeline
of financial distress
The 4 stages in the timeline of financial distress:
Informal Processes
Management-led Informal creditor
correction
workout
Emerging problems
Acute and worsening
problems
Insolvency Processes
Business rescue
Liquidation
Insolvency but
possible viability
Insolvency and
unlikely viability
Realisation of the
distressed company's
assets and the
distribution of
proceeds to its
creditors
Turnaround in the
absence of creditor
and legal issues
Informal agreement
between
management and
creditors (banks) to
reduce indebtedness
Present: judicial
management and
Section 311
Compromise of
Creditors
Future: new business
rescue legislation
Management retains
the initiative and
controls the
turnaround agenda
• Terms of workout
agreement dictates
agenda
• Banks hold the
power
• Court-driven – inflexible and expensive
• Historically a low success rate
But new business rescue legislation
should deliver a higher success rate in
stage 3
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©2004 Deloitte & Touche
ORIGIN
The Task Group defined specific roles for
ABASA and TMA
The timeline of financial distress:
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©2004 Deloitte & Touche
ABASA
• Origin
• Mission
• Interim Executive
• Status
6
©2004 Deloitte & Touche
MISSION
ABASA is an industry-proposed business
rescue regulatory body
Mission - to:
• Regulate activities of Business Administrators (its members)
in terms of new business rescue legislation
• Administer admission criteria based on:
– Qualifications and experience during an interim period
– Thereafter, exam on turnaround management, law and accounting
as per TMA’s Certified Turnaround Professional exam:
• Curriculum customised for South Africa
• Courses offered by tertiary institutions
• Ensuring professional conduct and ethical behaviour reinforced
by disciplinary measures
• Train and educate
Become a member if you wish to take charge of a distressed business as a
Business Administrator under future new insolvency laws
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©2004 Deloitte & Touche
ABASA
• Origin
• Mission
• Interim Executive
• Status
8
©2004 Deloitte & Touche
INTERIM EXECUTIVE
The Interim Executive was elected on 11th
October 2004
ABASA Interim Executive
Themba September
(Chairman)
Mervyn King
(Deputy Chairman
Lawrence Ngobeni
(Secretary)
Jan van der Walt
(Treasurer)
David Burdette
Patrick Daly
Martin Leigh
Jill Oliphant
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©2004 Deloitte & Touche
ABASA
• Origin
• Mission
• Interim Executive
• Status
10
©2004 Deloitte & Touche
STATUS
ABASA is in the process of requesting regulatory
powers through government legislation
• ABASA was set up on request from individuals in government
(but not by government itself)
• It is a registered Section 21 company, and an interim
executive is in place
• ABASA is in the process of requesting regulatory powers
through government legislation:
– Either as self-regulatory
– Or regulated by dti or DoJ
• Regulation may be influenced by the outcome of the
Ministerial Committee of Enquiry into the Liquidations Industry
• While awaiting a decision on regulation, ABASA is there to:
– Provide advice if advice is asked from government
– To support and lobby for new business rescue legislation
• Membership recruitment will commence once clarity have
been received from government regarding the way forward
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©2004 Deloitte & Touche
Questions?
Themba September
Chairman: ABASA
Cell: 083 607 3456
Email: [email protected]
For more information on ABASA:
Web site: www.turnaround-sa.com
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©2004 Deloitte & Touche