The period under review was significant in the life of Seardel. As reported on in the June 2008 annual financial statements, the pressures brought to bear on the group resulted in it breaching its funding covenants. To save itself from almost inevitable liquidation, the group required a recapitalisation. A rights issue was concluded on 27 October 2008 which saw Hosken Consolidated Investments Limited (“HCI”) become the controlling shareholder with a 71% shareholding. As a result of the successful conclusion of the rights issue and the provision of security,  the group’s commercial funders, who have combined facilities with the group in excess of R750 million, have agreed to leave their facilities in place until 30 June 2010 provided that the group does not breach any of its facility terms.