After almost 6 months of intensive turnaround work, EngagedBT published a draft Business Rescue plan for SGB-Smit Power Matla (Pty) Ltd (“SSPM”) on Friday 15 March 2024.
SSPM is a leading manufacturer of power transformers which are in high demand worldwide and also locally, with the current energy crisis that South Africa faces. SSPM is the only facility on the African continent which is capable of manufacturing and supplying Large Power Transformers up to 500 MVA and 420kV. The procurement of these Large Power Transformers are an essential requirement for the National Transmission Company of South Africa (previously Eskom’s Transmission division) to fulfil its duties in the immediate future and years to come.
SSPM went into business rescue on 27 September 2023. Almost immediately, the business rescue team had to deal with a court application to convert the business rescue into a liquidation, which the EngagedBT team successfully defended with the help of Julian Jones and his team at Webber Wentzel Attorneys.
The SGB-Smit business rescue process has required intensive intervention by EngagedBT in the disciplines of Leadership, Strategy, Operations, Production, Finance, Law and Litigation, Sales and CRM, Project Management and Negotiation amongst others. These interventions, executed in constant collaboration with the major stakeholders, have resulted in the publication of a business rescue plan that the EngagedBT team is very proud of.
Congratulations to all the EngagedBT team members who have worked on this project, to have reached this critical point of publishing the business rescue plan of which we are very proud.
To SGB-Smit (Germany), IDC, DTIC, Eskom, MWUSA, Solidarity, NUMSA, Webber Wentzel, all employees, creditors and clients of SSPM, we endeavour to work closely with all stakeholders in the months ahead to stabilise finances, protect employment, continue the operational turnaround and conclude a sale/recapitalisation deal which will allow SGB-Smit to pursue a promising new future in South Africa.