Business Rescue Practitioner of Ster Kinekor, Stefan Smyth received today, the requisite support to extend the deadline of the publication of the Business Rescue Plan to 30 September 2021.
In an update to affected persons, Smyth noted that an extension was requested as discussions with relevant stakeholders were still outstanding. He noted, “we have made good progress with all of the required discussions and negotiations and are grateful to our partners and suppliers for their proactive engagement and support. We have advanced our landlord discussions, received further positive feedback both from interested parties and existing shareholders, re-forecast the next three financial years and implemented numerous liquidity enhancement initiatives to ensure cash conservation and repositioned onerous contracts. Some of our initiatives have however been somewhat delayed due to the lockdown level 4, which also prevented all cinemas from trading for the whole month of July but we are glad to be reopening now in August.”
Smyth noted that prior to the move to lockdown level 4, Ster Kinekor had experienced strong month on month growth in attendance numbers as a result of the strong schedule of new movie content, albeit off a depressed base.
Commenting on the long term impact of the month long lock down, Smyth noted that the closure is anticipated to marginally impact the overall recovery trajectory of the business. “Having performed slightly better than forecast, in prior months has helped to partially offset the negative effects of the forced closure.”
The recovery trajectory still remains substantially intact and is supported by a strong ‘slate’ of film content. Attendance levels are projected to recover towards the end of this financial year, supported by the increasing pace of the vaccination rollout which is anticipated to increase public confidence as well as the anticipated release of major new blockbusters.
Smyth anticipates sufficient liquidity over the coming months to continue to allow the BR team to formulate and publish the BR Plan in the extended timeframes.
CEO of SKT, Motheo Matsau added, “With the adjustment to lock down level 3, we opened 19 venues on Tuesday and opened the remaining 33 venues today. We extend a warm welcome to movie goers, with the assurance that all covid-19 protocols are being strictly adhered to.”