Ster Kinekor – South Africa’s most prominent film exhibitor and cinema chain – has announced that it has exited business rescue after receiving a US$14 million parachute from two investment firms.
BMA understands that investments from UK-based asset manager Blantyre Capital and South African asset manager Greenpoint Capital formed the basis of the business rescue plan.
In a recent statement, Ster Kinekor and the business rescue practitioner announced that all regulatory requirements for the transaction were fulfilled.
According to them, these included approvals from the South African Reserve Bank and Competition Commission.
Business rescue practitioner Stefan Smyth said, “We are very pleased that we were able to raise the necessary capital to rescue Ster Kinekor. Not only does this investment give the business a solid foundation to build its future, but 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.”
Smyth said trade creditors would further benefit from ongoing trading with Ster Kinekor.
“We are seeing that cinema attendance is picking up since the stellar performance of Top Gun: Maverick,” Smyth said.
“It is expected to continue to improve into the holiday season with eagerly awaited additional films being released like Avatar: The way of water and Black Panther 2 [Wakanda Forever].”