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IOL News
21-05-2025
- Business
- IOL News
PIC backs Daybreak Foods' business rescue plan amid financial crisis
The PIC said that business rescue was the best path to preserve the company's value and potential, saving approximately 3 000 jobs, and importantly, to realise returns for clients and their beneficiaries on their investment. Image: File Banele Ginidza The Public Investment Corporation (PIC) has come out in support of the Daybreak Foods' board of directors' decision to place the company under business rescue. In a statement on Tuesday, the PIC - a major creditor and shareholder of Daybreak Foods - said it was of the firm belief that the company can be rescued and must be rescued. The PIC said that business rescue was the best path to preserve the company's value and potential, saving approximately 3 000 jobs, and importantly, to realise returns for clients and their beneficiaries on their investment. "The successful application to place Daybreak under 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," said the PIC Corporate Affairs. "In this regard, the business rescue practitioner will work closely with the Daybreak board of directors." Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ The PIC said it has already undertaken several measures to contribute towards stabilising Daybreak Foods, which included the injection of R74 million in working capital that was initially intended to address the company's immediate liquidity needs. The PIC has also reconstituted the board of directors for Daybreak Foods as part of interventions to stabilise governance and operations, retaining Dr. Cythnia Charlotte Nkuna as interim chairperson to replace Bojane Segooa who resigned with immediate effect after securing payment of R625 000 in board sitting allowances. The PIC bolstred the board with appointment of new members, including Lehlohonolo Andrew Makenete who is deputy chairperson, Tshokolo Petrus Nchocho, chartered accountant Brian Luthuli Mavuka and Martinus Philipus de Jonge from the PIC, respectively. Also retained from the previous board were Kgampi Jack Bapela and Esethu Ayanda Dazana. "The Daybreak Foods board, together with the PIC, will fully cooperate with the business rescue practitioner to implement a sustainable turnaround strategy and plan to stabilise the business and ensure its viability," said the PIC. This development comes as Lakat Chicken, one of Daybreak's suppliers, had approached the Pretoria High Court for a liquidation application to settle an alleged debt of R19.8m. In an official response last week, corporate affairs specialist Nokwazi Ngcongo confirmed that Daybreak Foods was exploring avenues to implement business rescue, pending the active participation and agreement from shareholders. "The board has extensively communicated with the PIC, the company's shareholder, and made numerous requests for funding to support operations, including feed for birds and payment of salaries, and continues to engage the PIC in hope of a positive response," Ngcongo said. Sam Dlamini, secretary general of the Agricultural Food and Allied Democratic Workers Union (ASADWU), said a coalition of labour and other stakeholders would later this week meet with the Daybreak Foods board on the company's strategic direction following the disruptions. Dlamini confirmed that workers at Daybreak had been finally paid their April salaries but were still owed for the month of May, according to the remuneration system used at the company. He said the workers were still at home and only the National Society for Prevention of Cruelty to Animals (NSPCA) was on site handling the stabilisation of the farm in Delmas. Nazareth Appalsamy, NSPCA farm animal protection unit manager, said the entity was still compiling a criminal case against the Daybreak Foods board. This is after the High Court last week extended an interim order for the entity to manage the humanitarian crises at the Daybreak farms where more than 200 000 birds had to be culled after poor management and abandonment resulted in cannibalism. Applsamy said to date, 400 000 birds had been stabilised and were being fed while 200 000 had to be put down. "We will still pursue criminal action because the actions of the board amounted to animal cruelty" Appalsamy said. Visit:
IOL News
12-05-2025
- Business
- IOL News
PIC seeks stability for Daybreak Foods as board faces crisis
The PIC charged that the board and management of Daybreak Foods remained responsible and accountable for the company's operations and finances. Image: File Banele Ginidza The Public Investment Corporation (PIC) said on Monday that it was considering various options to bring stability to the embattled State-funded poultry producer, Daybreak Foods. This comes as the PIC is engaged in ongoing talks with the Daybreak board of directors in the aftermath of a slplit that has seen the board chairperson leave reportedly after securing a R625 000 sitting allowance package. This is as the PIC over the weekend allocated a requested further R74 million to Daybreak, initially earmarked for capital expenditure, in a bid to address the company's immediate liquidity needs, which includes outstanding salaries for employees for the month of April 2025, feed supplies and specific essential operational expenses. The PIC charged that the board and management of Daybreak Foods remained responsible and accountable for the company's operations and finances. The laregst asset manager in Africa said it was strengthening the board and assisting it to strengthen management to help to bring stability to the company and to resume normal operations. "Daybreak's leadership is tasked to develop and implement a turnaround strategy and a credible turnaround plan to ensure long- term sustainability and growth, including how the company intends to avert job losses and safeguard the welfare of the livestock," said PIC spokesperson, Adrian Lackay, adding that any further outcomes will be communicated when approved. Tshepo Makhene, head of projects at the South African Clothing and Textiles Union (SACTU), said labour has had difficulty accessing Daybreak's management since the breakout of news that the board chairperson Bojane Segooa and the Chief Financial Officer (CFO) had resigned with immediate effect over the weekend. "There has been nothing happening today. We are hoping it is because the processes to release the finds for the workers salaries and feed for birds," Makhene said. "It is difficult to get people to engage with the executive after the CEO and CFO resigned. We are not sure if the workers have been paid yet but if they are kept in the dark, they will riot again." This is as the National Society for Prevention of Cruelty to Animals (NSPCA) returns to court on Tuesday where Daybreak will need to explain why the relief should not be made final. The NSPCA obtained an order on Friday, which instructed Daybreak to immediately stop all inhumane culling methods, provide adequate, species-appropriate feed for all birds, cease all breeding and placement of chicks or birds at any affiliated facilities and to provide a timeline and strategy to address and resolve this ongoing crisis. The NSPCA said last Wednesday it found a catastrophic welfare emergency currently unfolding at two of Daybreak's breeder farms in Bela-Bela and Mookgopong, with about 600 000 birds at immediate risk of starvation, suffering from cannibalism, injuries, and prolonged neglect due to insufficient feeding and inhumane culling practices. Visit:
