Howard leads hunt for Intervid funding
February 26, 2004
By Samantha Enslin
Durban - Rob Howard, the new executive chairman of Intervid, is confident funding will be found in the next few days from either local or international sources, saving the firm from looming liquidation.
Yesterday Howard said: "We are far down the road in talks with a international financier."
Intervid would meet all four major banks today to "have funding lined up before [February] 29".
Intervid, which has been at the centre of a power struggle between shareholders, is under threat by its banker, Nedbank, to have a R21 million overdraft withdrawn if it cannot provide surety by Sunday.
VenFin, which owns a 17.4 percent stake in the company, was willing to take over the overdraft and had made proposals to recapitalise the business - but only if the Howard family, which started the business in 1989, halted attempts to reconstitute the board. The Howards declined the offer and made new appointments to the board on Monday.
The new board plans to sell the international business. "If the business is sold at $40 million it will translate into a special dividend of R1.10 a share," Howard said.
The international operations, in Europe, Australia, the US and the Middle East, generated revenue of $40 million (R260 million) last year. ntervid lost 8c yesterday to R10.10.
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