PIC backs Edcon rescue plan

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The PIC, which has R1.2bn invested in Edcon, says the rescue plan approved on Monday by creditors has the best chance of saving jobs

Shoppers walk past an Edgars store at a shopping centre in Soweto, Johannesburg. Picture: REUTERS / SIPHIWE SIBEKO

The proposed plan seeks to support job and creditor sustainability and a higher recovery dividend for the Unemployment Insurance Fund , compared to a liquidation process, the PIC said in a statement. Edcon’s creditors approved the company’s business rescue plan after a meeting on Monday, with the practitioners having successfully warded off some creditors who tried to stop the process through the courts.The approval of the business rescue plan, which proposes an accelerated sale process, allows practitioners Piers Marsden and Lance Schapiro to sell the parts of the business that are of interest to bidders. Binding offers must be submitted by June 30.

 

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