IFA FAIR-ZIM HOTEL & RESORT PROPRIETARY LIMITED ENTERS BUSINESS RESCUE

IN RESPONSE TO UNPRECEDENTED CIRCUMSTANCES RESULTING FROM COVID-19 AND THE PROLONGED SA GOVERNMENT-IMPOSED NATIONAL STATE OF DISASTER

Thursday, 17 September 2020 09h30: As the Covid-19 crisis continues to disrupt local and global travel and tourism markets, IFA Fair Zim Hotel & Resort Proprietary Limited announced today that the company entered business rescue on Wednesday 16 September 2020 to safeguard the interests of all its stakeholders.

“The consequent stagnation in global economic activity together with the South African Government-imposed National State of Disaster has impacted negatively on our business”, said General Manager Wayne Krambeck.

The Fairmont Zimbali Hotel in particular, faced an unprecedented situation following the lockdown and border closures, despite experiencing exponential growth with record turnover from November 2019 to March 2020.

“We have been in support of our President and the government’s reasons for implementing the initial lockdown period however, the extraordinary circumstances of a prolonged lockdown now day 176 the longest in the world to date with limited support from government, has eroded our revenue base. The losses that will be incurred in a gradual return to normality with ongoing uncertainty and the possible threat of further restrictions is just not commercially viable. We have been left with no alternative but to apply for business rescue”, he said.

The Fairmont Zimbali Resort is one of the biggest foreign investments on the North Coast of KZN and has been a major role player in the South African hospitality industry with usage from local and national government, local tourism as well as International visitors.

The Board resolved to file for business rescue and appoint Pierre Berrange as the business rescue practitioner. The business rescue practitioner will formulate a rescue plan and ensure that the best way forward is found for all stakeholders in accordance with all regulatory requirements.

All stakeholders and suppliers will be contacted by the business rescue team to plan the way forward in accordance with the processes as provided in the Companies Act.

Issued on behalf of

IFA FAIR-ZIM HOTEL & RESORT PROPRIETARY LIMITED

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