Fresh and frozen poultry supplier Daybreak Foods has appointed Park Village Auctions (PVA) as transaction advisor to oversee asset sales and investor engagement under its business rescue process.
Tebogo Maoto, senior business rescue practitioner, confirmed the appointments on Wednesday.
Maoto said PVA would manage two important steps in the first Business Rescue Plan (BRP), which was published on August 22 and will be put to a creditor vote on September 5.
Emergency and Reactivation Phases
“The BRP outlines the Emergency and Reactivation Phases, which are designed to stabilise operations during this critical period. Upon approval, a second rescue plan will be introduced to address the stabilisation phase — focused on securing a strategic equity partner (SEP) to support the company’s long-term sustainability,” said Maoto.
He said the auction house has been tasked with selling a 35-hectare non-core property in Howick. The property includes a former hatchery. This is As part of the capital-raising strategy, he said.
He explained that the property is not linked to Daybreak’s core operations or employees.
“In anticipation of the publication of the second business rescue plan that will focus on the stabilisation phase, the Business Rescue Practitioner (BRP) has issued a Request for Proposals (RFP) to attract potential investors interested in supporting Daybreak’s recovery.
Committed to preserving core operations
“Importantly, there are no plans to dispose of core assets during the Emergency and Reactivation Phases. The company remains committed to preserving core operations and achieving a successful turnaround,” said Maoto.
PVA has also invited Expressions of Interest from investors to acquire or partner with Daybreak Foods. The latter operates a vertically integrated poultry business across Gauteng, Mpumalanga and Limpopo.
Its operations include a feed mill, breeder farms, a hatchery, a broiler farm and an abattoir.
“The objective of the SEP process is to ensure business continuity and, wherever possible, preserve jobs.
“As a transaction advisor, PVA will manage the process and provide prospective investors with the necessary information to make informed decisions,” said Maoto.
He said Daybreak Foods is committed to rebuilding in an open and responsible way. With the backing of its partners and stakeholders, the company believes it can recover and come back stronger.