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ABASA – Association of Business Administrators of South Africa
2©2004 Deloitte & Touche
ABASA
• Origin
• Mission
• Interim Executive
• Status
3©2004 Deloitte & Touche
ABASA is an outcome of the Task Group for Organising the Turnaround and Business Rescue Industries
Seated: Stephan Claassen (FNB), Lawrence Ngobeni (University of Pretoria - alternate for Professor David Burdette) (Secretary), Themba September (Corporate Renewal Partners) (Chairman), Mervyn King (Brait), Ricardo Graham (Maximus Turnarounds).
Standing: Inus du Preez (FNB), Sarel Lategan (Standard Bank - alternate for Christo Faul), John Evans (Deloitte), Robin Taggart (Nedbank), Patrick Daly (Daly Incorporated), Kevin Cochrane (Nedbank - alternative for Anna Isaac), Krisjan Barnard (Absa - alternative for Trevor Murgatroyd), Jan van der Walt (Corporate Renewal Partners), Les Matusen (Credit Management Solutions - alternate for Rowan Gordon), Jan Bicker-Caarten (RMB), Martin Leigh (RMB), David Gewer (Werksmans).
Absent: Paul Winer (Werksmans), Michael Vacey-Lyle (FNB).
Work Group of the Industry Task Group(Supported by 80 Advisory Group members):
ORIGIN
Grass-roots involvement from 100 participants from all constituencies in the turnaround and
business rescue industries in South Africa
4©2004 Deloitte & Touche
The Task Group assessed organised industry in terms of the model describing the timeline of financial distress
The 4 stages in the timeline of financial distress:
Informal Processes Insolvency Processes
Management-led correction
Informal creditor workout
Business rescue Liquidation
Emerging problems Acute and worsening problems
Insolvency but possible viability
Insolvency and unlikely viability
Turnaround in the absence of creditor and legal issues
Informal agreement between management and creditors (banks) to reduce indebtedness
Present: judicial management and Section 311 Compromise of CreditorsFuture: new business rescue legislation
Realisation of the distressed company's assets and the distribution of proceeds to its creditors
Management retains the initiative and controls the turnaround agenda
• Terms of workout agreement dictates agenda
• Banks hold the power
• Court-driven – inflexible and expensive• Historically a low success rate
But new business rescue legislation should deliver a higher success rate in
stage 3
ORIGIN
5©2004 Deloitte & Touche
The Task Group defined specific roles for ABASA and TMA
ORIGIN
The timeline of financial distress:
6©2004 Deloitte & Touche
ABASA
• Origin
• Mission
• Interim Executive
• Status
7©2004 Deloitte & Touche
ABASA is an industry-proposed business rescue regulatory body
Mission - to:• Regulate activities of Business Administrators (its members) in
terms of new business rescue legislation• Administer admission criteria based on:
– Qualifications and experience during an interim period– Thereafter, exam on turnaround management, law and accounting
as per TMA’s Certified Turnaround Professional exam:• Curriculum customised for South Africa• Courses offered by tertiary institutions
• Ensuring professional conduct and ethical behaviour reinforced by disciplinary measures
• Train and educate
MISSION
Become a member if you wish to take charge of a distressed business as a Business Administrator under future new insolvency laws
8©2004 Deloitte & Touche
ABASA
• Origin
• Mission
• Interim Executive
• Status
9©2004 Deloitte & Touche
Themba September(Chairman)
The Interim Executive was elected on 11th October 2004
ABASA Interim Executive
David Burdette
Mervyn King(Deputy Chairman
Lawrence Ngobeni(Secretary)
Patrick Daly Martin Leigh Jill Oliphant
Jan van der Walt(Treasurer)
INTERIM EXECUTIVE
10©2004 Deloitte & Touche
ABASA
• Origin
• Mission
• Interim Executive
• Status
11©2004 Deloitte & Touche
ABASA is in the process of requesting regulatory powers through government legislation
• ABASA was set up on request from individuals in government (but not by government itself)
• It is a registered Section 21 company, and an interim executive is in place
• ABASA is in the process of requesting regulatory powers through government legislation:– Either as self-regulatory– Or regulated by dti or DoJ
• Regulation may be influenced by the outcome of the Ministerial Committee of Enquiry into the Liquidations Industry
• While awaiting a decision on regulation, ABASA is there to:– Provide advice if advice is asked from government– To support and lobby for new business rescue legislation
• Membership recruitment will commence once clarity have been received from government regarding the way forward
STATUS
12©2004 Deloitte & Touche
For more information on ABASA:Web site: www.turnaround-sa.com
Questions?
Themba SeptemberChairman: ABASA
Cell: 083 607 3456
Email: [email protected]