Insolvency & Restructuring

The company, a national discount chain selling a wide range of merchandise experienced losses as a result of a combination of factors including increased distribution costs, margins steadily declining, the recession and downturn in the global economy and increased competition. 

Matuson & Associates were able to secure post commencement funding (PCF) to continue trading, and maintained continuity of stock from suppliers.

The business was successfully sold with value being realized for creditors in excess of what would have been achieved in a liquidation.

Matuson & Associates received the Turnaround Management Association of South Africa runner up award in the medium to large Business Rescue category in 2014 for this successful Business Rescue.

Ellerine Furnishers (Pty) Ltd, a retailer of furniture and household appliances , commenced with Business Rescue in 2014. This has been the largest Business Rescue to date, based on the Public Interest score of the Company. The firm employed almost 8000 people and had operations in six African countries, comprising over 1000 stores.

In 2010 the provision of credit and financial services component was sold to African Bank. This resulted in a significant decrease in the Company’s income and profitability. A decision was taken that no further funding would be provided by ABIL or African Bank in August 2014 and it was thereafter resolved to place the company into Business Rescue.

Ellerine Furnishers held a deposit of R472million with African Bank that would have been utilised as Post Commencement Funding (PCF). However, the Bank was placed under Curatorship less than a week after the commencement of the Business Rescue. With no accessible funds in the bank accounts, there was an urgent need to secure PCF

PCF was eventually secured after extensive discussions with African Bank. Store closures, realisation of stock and sales of part of the business have all been carried out, saving approximately 2000 jobs to date.

The dividend paid to creditors to date has far exceeded the ‘best case’ dividend that creditors would have received in liquidation and it is estimated that the final dividend will be approximately 42c in the Rand.

In the case of Geiger technologies GmbH, PLUTA Rechtsanwalts GmbH succeeded in selling company shares to the Dutch investment company HTP. Geiger technologies supplies the car industry with components and generated revenues of approximately € 100 million. The insolvency Administrator, Dr. Martin Prager, succeeded in turning the company around. The Local Court of Weilheim had opened insolvency proceedings on 1 February 2009. Proceedings ended in mid-2015.