SCREEN AFRICA EXCLUSIVE, Linda Loubser writes… According to Waterfront Studios executive director Gary Edwardes it is still too early in the liquidation process to predict what will happen to the company, but they are “trying desperately to find the best route out for Waterfront Studios to keep their doors open’.
Waterfront Studios launched an application for provisional liquidation in the Cape High Court after a business rescue programme available via the new Companies Act failed to resolve all outstanding matters.
The rescue programme started on 5 August 2011, led by independent business rescue practitioner Hans Klopper and assisted by Waterfront Studios management team that includes Mike Smit, Rob Meddens and Gary Edwardes.
According to Edwardes the company was financially stressed and in need of the business rescue plan due to numerous reasons, including one or two shareholder conflicts, the worldwide economic downturn, the strong rand and increasing competition in the post-production industry.
They had been trying to streamline and consolidate the business internally during the business rescue process. “There is a timeframe of three months for the business rescue process. When the time expired without all issues resolved we decided it wasn’t in our best interest to apply for an extension, as it will be easier for the business to move forward under liquidation,’ explains Edwardes.
A return court date is set for 29 January 2012, on which date the Court will decide whether to grant a final order or not. Edwardes explains that the company has three options before that date: sell the business as a going concern; for the company to shut its doors and sell its assets; or a scheme of arrangement between all parties concerned.
“The ultimate goal for us at the moment is to sell Waterfront Studios as a going concern,’ says Edwardes. “There’s been one or two tentative inquiries from international companies, so there does seem to be interest in buying Waterfront Studios. What no-one wants is for the business to close down and scare off the Hollywood Studios who want to do business in Cape Town. Waterfront Studios has consistently been one of the top three film labs in the world, and the top film lab in Africa. Therefore we need to keep our doors open, maybe not in exactly the same guise and form, and hopefully not with the same owners, but Waterfront Studios needs to stay open.’
In the meantime, line producer at Waterfront Studios Liezel Vermeulen assures Screen Africa that the company is still operating as always. “We are still open for business, and our clients are still comfortable that their projects are in good hands. In fact, it is thanks to our clients sticking with us and our partnerships with them that were are still in such a positive space,’ notes Vermeulen.
Edwardes stresses that he has confirmed both the provisional liquidators and lawyers that any project at Waterfront Studios is still the property of their clients, and as such will be safe immaterial of what happens to the company in the future.
