The list of Edcon’s secured creditors, published as part of the business rescue plan on Monday, reveals that a total of R3.7 billion is owed to more than 80 entities.
The list of unsecured creditors is likely far larger (running to many more billions), but these businesses are either fourth or last in the queue, depending on their status.
The business rescue practitioners have announced that they are pursuing an accelerated sales process of parts of the Edcon group after no buyers nor any investors were found for the entire business.
Aside from the two operating divisions (Edgars and Jet), which are arguably less and more attractive respectively, the group’s second-look credit book will no doubt find a buyer.
It is unclear what value the Thank U rewards business would have by itself. They hope to conclude this by July with a completion of the transaction(s) as soon as practically possible. The practitioners have noted there are 15 interested parties.
The UIF is owed more than R888m
The single largest creditor is the Unemployment Insurance Fund (UIF), represented by the Public Investment Corporation. The UIF is owed R888.8 million, thanks to instruments that allow it a conditional claim under business rescue (and/or liquidation). It invested a total of R1.2 billion into the group as part of a R2.7 billion recapitalisation in March last year.
Next-largest is the R834 million owed to various Apollo entities, while the third-biggest claim is from AlbaCore Capital (R496 million). The former is the global private equity group, while the latter is a European investment firm that focuses on “private debt and opportunistic credit investments”.
These entities would have claims based on them being a bondholder under the former Edcon structure. Those debt holders became equity holders as part of the recapitalisation.
Main Image: Cape Town ETC