Daybreak Foods embarks on rescue plan with R150 million injection from PIC

DAYBREAK Foods is optimistic of a pivotal turnaround toward operational stability and long-term sustainability at the breeder and hatchery farms with the R150 million funding provided by the Public Investment Corporation (PIC).

- BANELE GININDZA

This funding has set off operations of the sections while licences are sought for abattoir operations at various subsidiaries.

This is according to the first phase of the Business Rescue Plan (BRP) for the poultry producer, which went into business rescue after its first quarter performance dipped significantly lower than prior periods.

Daybreak was strangled by limited net working capital to operate at capacity, and significant equipment breakdowns, and operational disruptions including strikes and supplier service withdrawals due to the financial position.

According to Tebogo Maoto, senior business rescue practitioner for Daybreak Foods, the rescue process has been grouped into three individual phases consisting of the Emergency Phase, Reactivation Phase, and the Stabilisation Phase. The proposals set out in this plan will focus primarily on achieving the goals set out in the first two phases. The company is currently in the Emergency Phase and has managed to achieve the majority of the goals set out.