South African commission evaluating Apollo restructuring plan

As reported on 17 September, Apollo Tyres’ South African subsidiary, Apollo Tyres Africa Proprietary Limited – the residual operation remaining after the sale of the main business to Sumitomo Rubber Industries in 2013 – voluntarily initiated Business Rescue Proceedings on 15 September 2014 as per the provisions of the South Africa Companies Act. The tyre maker cited “prevailing adverse business conditions” as the reason for taking this step.

In its second quarter notes, Apollo reports that a Business Rescue Plan, which will help restructure the regional operation, was submitted to the South African Companies and Intellectual Property Commission (CIPC) on 22 October 2014. It writes that the costs involved with restructuring the South African business will “depend on the outcome of the proceedings and will be accounted as and when determined.”