Steval Engineering to be liquidated
The liquidation order for Steval Engineering was granted by the Gauteng High Court on September 26.
MBOMBELA – It has been common knowledge for a long time that it was struggling, but a year ago there was much hope that the company could be saved.
However, it cannot, something the court made official last week.
Steval specialises in the fabrication and erection of structural steel. It has played a key role in the local economy as job creator and doing business with smaller local companies. For years it was also the title sponsor of the Pumas rugby team.
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However, on August 30 the business rescue practitioners distributed a notice to all affected persons that they “have concluded that there is no longer a reasonable prospect for the company to be rescued.”
It notes that “the last updated cash flow projections to complete the current contracts and variation order on the Kusile site reflect a loss; there is no reasonable possibility or prospect that this situation could change or be rectified. All attempts to obtain bridging finance have failed,” the report adds.
Steval was placed under supervision and began business rescue proceedings on August 4, 2017. Thomas George Nell and Aviwe Ntandazo Ndyamara were appointed joint business rescue practitioners.
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At the time the preliminary findings were that there was a reasonable prospect of saving Steval Engineering. In August 2017 its creditors listed claims totalling over R200 million.
The proposed business rescue plan was published on November 6. An amendment thereto was distributed on December 5, but several creditors required further amendments. Following a creditors’ meeting on December 12, the plan was adopted with a 99,7 per cent majority vote. Further proposed amendments were published on May 31.
In the notice, issued on August 30, the business rescue practitioners noted that, “An extraordinary attempt has been made to rescue Steval,” but that it failed.
They added that the business rescue plan could not be implemented due to the company’s inability to make the agreed payments due to its financial position. The company ended up three months behind on its payments.
Steval could also not pay SARS or cover its operational costs.
Mike Naudé, business development director, said he was unable to discuss the liquidation at present, or how the large company got where it is.
The business rescue practitioner declined to comment on Lowvelder’s questions.
