TM Restructuring has an impressive track record

Trevor and TM Restructuring have successfully designed, negotiated and implemented a number of transactions, some of the more prominent engagements include:

• Absa Capital, as clearing member was faced with large Single Stock Future positions some of which defaulted. Trevor was engaged to assist with the negotiation of settlements and refinancing packages with respect to some of these positions;
• A South African bank faced a dispute with the Government of the Republic of Zambia ("GRZ"). Trevor was engaged to recover a substantial amount from the GRZ and successfully negotiated a commercial settlement to the dispute, the implementation of which was successfully facilitated by Trevor;
• Trevor assisted in an advisory role with regard to the recapitalisation of a listed company which included the restructuring of their banking arrangements and an underwritten rights issue. This included participating in the banking consortium;
• Negotiated and implemented an informal business rescue for one of the largest privately owned alluvial diamond miners. Facing foreclosure, Trevor successfully implemented a restructuring, which entailed the acquisition of the claims and security of the financiers to the group; and
• Assisted a company, whose major activities are the manufacturing and distribution of plastic pipe systems, fittings and flexible hoses, which culminated in one of the first offers of compromise with creditors pursuant to Section 155 of the Companies Act, soon after the effective date of the Act.

Trevor has performed the role of Senior Business Rescue Practitioner ("BRP") for the following matters:

• Mpumalanga Petroleum – marketing and distribution of petroleum. In view of a shortage of working capital, the business could not achieve the volumes it required to become profitable. The rescue plan, unanimously approved by the creditors at the relevant meeting, entailed the sale of the business as a going concern in order to preserve employment, obtain access to additional funding and ensure a sustainable business into the future.
• Eurocelt Durban – a manufacturer of plastic water and sewer pipe systems from polypropylene and HDPE. After the previous two BRPs had been removed, Trevor was appointed as BRP to salvage the tenuous situation. The business rescue was carried out with the limited financial resources available to the company. The business rescue plan entailed the sale of the business as a going concern, the preservation of employment and proceeds derived therefrom were applied to a compromise with the creditors.
• Creditworx – the rescue plan entailed a substantial cash injection into Creditworx by Nimble Group as the new shareholder, which was applied to fund a restructuring of the operations and a compromise with the creditors.
• Sanyati Civil Engineering and Construction ("SCEC") – a civil engineering and construction business. In the absence of post commencement finance ("PCF") the business could not operate. Subsequent to an investigation into the affairs of the business it was determined that there no longer existed a reasonable prospect of rescue and therefore an application was made to court for the liquidation of SCEC and a final order for liquidation was granted.
• Thuthuka Group Ltd ("TGL") – a multi-disciplinary engineering company, which included chemical and metallurgical process, water and effluent treatment, hazardous waste and air pollution control as well as the construction of the civil infrastructure for these plants. A New York based private equity firm, had invested in the TGL holding company. This investor commenced contentious and complex litigation aimed at derailing the business rescue proceedings. Trevor settled the disputes amicably to enable the implementation of a business rescue plan. The adopted business rescue plan culminated in the settlement of the contentious litigation, the disposal of the business as a going concern of one of the subsidiaries, the sale of a letting enterprise of a property owning subsidiary and the sale of shares and claims in two other subsidiaries.
• Joint BRP for three companies in the same group:
  • Continental Coal Ltd (South Africa), an investment holding company with investments in mining and exploration and related activities;
  • Mashala Resources (Pty) Ltd, operated in mining of coal and lignite, exploration and marketing of coal resources and has investments in other mining and exploration interests; and
  • Penumbra Coal Mining (Pty) Ltd a coal mining operation in the Ermelo area.
  All three business rescue plans were approved, which entail an accelerated M&A process, which has/will culminate in:
  • conclusion of various arbitrations to resolve certain contentious disputes;
  • negotiated settlements with certain creditors;
  • the disposal of shares and claims in two subsidiaries;
  • a further M&A process once arbitration has been completed regarding disputes over certain mining rights.
• Joint BRP for Kudumane Manganese Resources (Pty) Ltd ("KMR"), a manganese mining company. KMR employed a contract miner, which exercised a lien over certain of KMR's stockpiles and applied to court for business rescue of KMR. Upon commencement of business rescue proceedings, the BRPs reached a commercial settlement with the contract miner and had the lien lifted. Thereafter, the BRPs negotiated a cash injection by one of the shareholders, which was sufficient to settle all material creditors. Within two months from commencement of business rescue, an application was made to court to terminate business rescue as the company was no longer financially distressed. The outcome of the hearing was an order granted to terminate business rescue proceedings within 3 months of commencement.
• Derry Engineering (Pty) Ltd – manufacturer of valve gear and other components for drilling equipment for the mining sector. The business rescue plan entailed the commitment of the existing shareholder to fund the future business operations and a cash amount applied as an offer of compromise to all creditors and a restructuring of the secured creditor's claims over a protracted period. The business rescue was terminated within 3 months of commencement.
• International Ferro Metals (SA) – producer of ferrochrome from the chromite ore located in the Bushveld Igneous complex, comprising a chromite mine and integrated beneficiation and smelting operations. The combination of low ferrochrome prices, high electricity prices and other costs as well as losses of ferrochrome production strained IFMSA's liquidity causing its financial distress. The business rescue plan approved by the requisite creditors envisages an accelerated disposal process. The operations were placed under care and maintenance in order to reduce costs to a minimum and preserve cash in order to avoid liquidation and allow time for implementation of the approved Plan. Samancor Chrome was selected as the successful bidder to acquire the business as a going concern. Various litigation was instituted and defended. The implementation of the approved Plan and litigation is ongoing.