Talks look promising for Ster-Kinekor's business rescue plan, says practitioner

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The current restrictions may still impact the pace of any expected recovery.
The current restrictions may still impact the pace of any expected recovery.
Photo: KEHAN CHEN/Getty Images

Discussions on Ster-Kinekor's business rescue plan and its longer-term stability are advancing well and significant progress has been made since the end of July, when the last update was given to affected parties, business rescue practitioner Stefan Smyth said on Tuesday. 

"Discussions are at an advanced stage with certain key strategic, mainly digital and technology partners, which are also critical for the successful implementation of the business rescue plan and longer-term stability of Ster Kinekor," he said in a statement.

"The re-opening of cinemas in August bodes well for the industry; however, the current restrictions may still impact the pace of any expected recovery. Attendance levels are expected to steadily recover towards the end of the year."

Marginally reduced volumes are expected in the next few months, with a higher uptake later in the financial year as vaccinations rapidly increase. Strong content is also expected to draw viewers throughout this and the next financial year, Smyth said. 

"We remain of the view that there is a reasonable prospect to rescue the company," he said.

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