The Public Investment Corporation (PIC), a major creditor and shareholder of Daybreak Foods, says it supports the Daybreak Foods board's decision to place the company in business rescue.
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.”
TimesLIVE
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