Daybreak Foods placed in business rescue, hopes to save 3,000 jobs
The PIC said on Monday it was of the firm belief that the company can be rescued and that business rescue is the best path to preserve the company's value and potential, saving about 3,000 jobs and realising returns for clients and their beneficiaries on their investment.
The PIC said the successful application to place Daybreak in business rescue paves the way to appoint a business rescue practitioner who will assist Daybreak to assess the extent of disruption to operations and produce a credible turnaround strategy for the business. The business rescue practitioner will work closely with the Daybreak board.
'The PIC has already undertaken several measures to contribute towards stabilising Daybreak Foods, which includes the injection of R74m in working capital that is intended to address the company's immediate liquidity needs.'
Before the company was placed in business rescue, the PIC had reconstituted the board for Daybreak as part of interventions to stabilise governance and operations at the company.
Members of the reconstituted Daybreak Foods board are:
Dr Cynthia Charlotte Nkuna (retained, interim chair)
Lehlohonolo Andrew Makenete (interim deputy chair)
Tshokolo Petrus Nchocho
Kgampi Jack Bapela (retained)
Esethu Ayanda Dazana (retained)
Brian Luthuli Mavuka (PIC), and
Martinus Philipus de Jonge (PIC) interim CEO of Daybreak Farms.
'The Daybreak Foods board, together with the PIC, will fully co-operate with the business rescue practitioner to implement a sustainable turnaround strategy and plan to stabilise the business and ensure its viability.'
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Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. 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While so many of the Public Investment Corporation's investments are in listed entities and we can all see whether it's making good decisions, the problems come in with its unlisted investments where, perhaps, someone gets to play with a huge amount of money without a huge amount of attention. If it is true that compound interest is the 'eighth wonder of the world', then the Public Investment Corporation (PIC) must be its colossus. It is so staggeringly big that it almost defies comprehension. The PIC currently has more than R3-trillion in assets. And it controls about 10% of the JSE. The scale of it is so big that its investment decisions could not just make or break companies, they might even make or break entire industries in South Africa. It makes the proposed Transformation Fund that would invest R100-billion look like a tiddler by comparison. It is just that big. There are important reasons it got so big, but one of them must be its age. It was created in 1911. 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