JOHANNESBURG - The winners of the first annual Business Rescue Awards were announced at a gala dinner in Johannesburg last Thursday evening. The awards, which recognise the most successful turnarounds and impactful transactions, and honour the top professionals in Business Rescue are the initiative of the Turnaround Management Association of Southern Africa (TMA-SA).
Werner Cawood, attorney and Business Rescue Practitioner at Cawood Attorneys, won the award for most successful Business Rescue of a small to medium sized company (R1 – R50 million turnover) for the rescue of Gondwana Marketing (Pty) Ltd, while Peter van den Steen, Business Rescue and Turnaround Practitioner at V-Squared Business Rescue Services (Pty) Ltd walked away with the award for the most successful Business Rescue of a medium to large sized company (R50 million plus turnover) for his work on the rescue of Southgold (Pty) Ltd.
Leslie Matuson of Matuson & Associates was the runner up in both the small to medium, and the medium to large categories for his successful rescues of President Stores CC and B&J Meltz (Pty) Ltd respectively.
TMA-SA CEO, Alastair MacDuff said, “The TMA honours excellence through its annual awards program. A Business Rescue means more than adjusting a balance sheet. When corporate value is on the line, jobs are at stake and time is the enemy, turnaround and Business Rescue professionals step in to establish effective operations, implement solid management, improve cash flow and increase production, in addition to the countless other factors that contribute to the triumphant recovery of a struggling company.”
He continued, "Because TMA understands that each turnaround is unique, it has created distinct categories to recognise outstanding Business Rescues. The awards are presented to the individual, who together with a team of turnaround professionals, has orchestrated the most successful Business Rescue in the various categories."
In the rescue of Gondwana Marketing (Pty) Ltd, Cawood successfully obtained an interdict with costs against a disgruntled creditor, where a 100% of creditors voted in favour of the Business Rescue plan and accepted the compromise in order to see the company continue as a successful operating business. A total of 45 jobs were saved, a liquidation dividend of 10 cents was produced, the cash balance improved from zero to R350k, and the net asset value improved from negative R28m to positive R2,8m.
Through van der Steen’s intervention, the complex and multi-jurisdictional Southgold business rescue yielded a 33c dividend for secured creditors, and saved over a 1000 jobs, whilst navigating through an intense tender process, protracted discussions and negotiations and a multifaceted process to implement the plan. The rescue entailed dealing with, amongst others, regulatory, employment, tax, restructuring, insolvency, BEE and mining related issues, including an application to Court setting precedent in our law. The cash of the business increased from R42m to R367m and the net asset value improved from negative R1,9bn to a positive R4,9bn. Annual losses of R794m were converted to profits of R69m.
The awards evening was hosted by popular radio and TV personality, David O’Sullivan.
About the Turnaround Management Association – Southern Africa
The core purpose of the Turnaround Management Association of Southern Africa (TMA-SA) is to strengthen the economy through the restoration of distressed businesses. Corporate renewal enables economic growth, and allows financially distressed businesses to be saved, thereby continuing in the economic mainstream, preserving jobs and paying taxes.
TMA-SA aims to equip its members with skills and knowledge for the first three stages of corporate decline in the timeline of financial distress: management correction; informal creditor workout; and business rescue. TMA-SA is part of the international Turnaround Management Association group.
Membership provides a networking infrastructure, knowledge sharing amongst local and international practitioners and educational opportunities. In addition, TMA-SA provides a platform for members to promote themselves and their businesses. Membership is open to all professionals interested in corporate renewal, including business transformation, turnaround, and business rescue, who manage, provide professional services to or fund troubled companies; or who govern, educate and study the industries and disciplines of corporate renewal.