CHEMICAL SPECIALITIES LIMITED - Update regarding the liquidation and continued suspension of shares

Update regarding the liquidation and continued suspension of shares

Chemical Specialities Limited
Incorporated in the Republic of South Africa
Registration number 2005/039947/06
Share code: CSP &CSPP
ISIN: ZAE000109427 & ZAE000184305
("Chemspec" or "the Company")

Update regarding the liquidation and continued suspension of shares
Shareholders are referred to the announcements released on SENS on
3 August 2015, 11 September 2015 and 10 December 2015, regarding
the Company being placed into provisional liquidation on 5 August
2015. The Joint Provisional Liquidators (“Liquidators”) appointed
by the Master of the High Court Durban are: Eugene Nel, Thami
Mshengu, Roselyn Noel and Selby Ntsibane. The Liquidators
appointments were made final on the 18th November 2015.

1.   We have lodged the first liquidation and distribution account
     which account only deals with debtors collected thus far;
2.   The account is currently lying open for inspection in terms of
     Section 406 of the Insolvency Act.
3.   The landlord has requested that we do not pay preferent and
     concurrent creditors and that we do not do a distribution on
     the movable assets as they believe that their part, or full
     claim constitutes a cost in the administration.
4.   The claim of the landlord is R609,529,597-52
5.   The landlord threatened to interdict the liquidators from
     lodging an account dealing with creditors as per paragraph 4
     above.
6.   In order not to incur any unnecessary legal costs, we agreed
     not to do a distribution as set out in paragraph 4.
7.   Should the landlord not bring an action to establish its claim,
     then we intend on lodging the second liquidation and
     distribution   account,  which   will  make   provision for a
     distribution to concurrent and preferent creditors.

Shareholders are advised that the liquidation process is ongoing
and that the trading in the shares of the company remains
suspended.
A recovery for shareholders appears to be extremely unlikely.

The statutory report, resolutions, circulars to creditors and
liquidation & distribution account can be downloaded from the
website: www.chemliq.co.za.

PIETERMARITZBURG
9 JUNE 2016

Designated Advisor:
Grindrod Bank Limited

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