South African cinema group Ster-Kinekor exits ‘business rescue’ process

JOHANNESBURG, Nov 11 (Reuters) – South African cinema group Ster-Kinekor has exited a local form of bankruptcy protection called “business rescue” after nearly two years, its administrator said on Friday.

Ster-Kinekor was placed under administration in January 2021, citing losses and financial distress due to COVID-19 and related restrictions forcing closures and prohibiting large gatherings in public spaces.

Meanwhile, studios either postponed blockbusters or released them directly on home streaming platforms, denting box office earnings.

Its business rescue practitioner, Stefan Smyth, said in a statement the rescue process, which returns the company to solvency, involved raising capital of 250 million rand ($14.50 million) from UK based asset manager, Blantyre Capital and from South African asset manager Greenpoint Capital.

Ster-Kinekor, which operates 52 commercial cinema complexes in South Africa, also renegotiated lease agreements with landlords, which were a material condition for the conclusion of the transaction.

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Image Credit: REUTERS/ Siphiwe Sibeko

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