| Name of Business: | Large Scale Irrigation Services |
| Entity Type: | Proprietary Limited (Pty Ltd) |
| Location: | Eastern Cape, South Africa |
| Public Interest Score: | 59 |
| Staff: | 23 Employees |
| Dates of Business Rescue: | December 2012 - October 2014 |
| Total Debt: | R5 752 610 |
| Vote of Proposed BR Plan: | 100% in Favour |
Established in 1990, this family-owned business specialized in designing, installing, and maintaining small to large-scale irrigation systems across various farming types nationwide. Despite its solid industry reputation and decades of operation, the company faced severe financial distress by late 2012, primarily due to non-payment from debtors, environmental challenges, and internal shareholder disputes.
With the business teetering on the edge of insolvency, the directors opted for voluntary business rescue proceedings under Section 129 of the South African Companies Act in December 2012. At this juncture, the company was operating out of two offices in the Eastern Cape and employed 23 staff members.
Limited funds were available to purchase stock, the bank had terminated all facilities, and creditors were insisting on COD (cash on delivery) payment for stock.
In July 2013, a comprehensive business rescue plan was drafted and presented to the creditors in terms of Section 150 of the Companies Act of South Africa. The plan included the sale of the business as a going concern to one of South Africa's largest agricultural Co-operatives, ensuring the retention of all jobs and the payment of the company's debts.
This was an organic turnaround, and although some minor funding agreements were made with creditors, combined with securing additional deposits, no actual Post Commencement Finance (PCF) was required.
The creditors unanimously approved the business rescue plan with minor amendments in terms of Section 151 of the Companies Act of South Africa. Subsequently, in October 2014, the business filed for substantial implementation, marking a successful exit from business rescue.
This case exemplifies how strategic planning, combined with stakeholder engagement, can lead to a successful turnaround, saving jobs and preserving the business's core operations without the need for additional funding.