ALERT STEEL HOLDINGS LIMITED - Update re business rescue proceedings of Alert Steel Holdings and further cautionary announcement

Update re business rescue proceedings of Alert Steel Holdings and further cautionary announcement

ALERT STEEL HOLDINGS LIMITED (IN BUSINESS RESCUE)
(Incorporated in the Republic of South Africa) 
(Registration number 2003/005144/06)
JSE code: AET     ISIN: ZAE000170395
(“Holdings”)

Update re business rescue proceedings of Alert Steel Holdings and further cautionary 
announcement

Shareholders are referred to the announcement released on SENS on 30 July 2014 regarding 
the application by Mr JM Damons of Legae Trust (Pty) Ltd, the business rescue practitioner 
(“BRP”) of Holdings, to the South Gauteng High Court to discontinue the business rescue 
proceedings of Holdings and place the Holdings into liquidation.
 
The BRP has advised that Cannistraro Investments 282 (Pty) Ltd, a major shareholder in 
Holdings, brought an application to intervene in the liquidation application.  They contended 
that the matter was not urgent and that they were not given sufficient time to consider the 
matter.   The parties then agreed to remove the matter from the roll. 

Furthermore, the BRP has been informed of negotiations between the liquidators of Alert Steel 
(Pty) Ltd and Mercantile Bank that could see the debt of Mercantile Bank being restructured or 
extinguished. The result of this could result in Holdings no longer being indebted to Mercantile 
Bank and therefore no longer in financial distress.

At this point Holdings is still in business rescue. 

In light of the above, and once the negotiations have been completed, the BRP will do one of the 
following:

1. Continue with the liquidation application; or
2. Terminate the business rescue because Holdings is no longer financially distressed; or
3. Publish a business rescue plan.

The BRP received consent from Mercantile Bank, by far the largest creditor in Holdings, that the 
publication of a business rescue plan for Holdings be postponed to 11 September 2014.

Further cautionary announcement

In the light thereof shareholders are advised to continue to exercise caution when dealing in the 
securities of Holdings until a further announcement has been made.

8 August 2014
Pretoria


Designated Adviser
Exchange Sponsors



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