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

Update regarding provisional 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 provisional 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. The first liquidation and distribution     (L&D)   account   was
     confirmed on the 6th July 2016;
  2. The first L&D account only dealt with debtors collected thus
     far, as the landlord had lodged a claim in the amount of
     R609,529,597.52, which claim the Master of the High Court had
     rejected. As advised previously, the landlord had requested
     that we do not pay preferent and concurrent creditors and that
     we not do a distribution on the movable assets as they believe
     that their part, or full claim constitutes a cost in
     administration;
  3. The Liquidators engaged in the services of a Quantity
     Surveyor, as did the Landlord and a consensus was reached on
     the value of the Landlord’s claim, save and except for the
     Landlord’s discrepancy relating to the Bulk Storage Tanks,
     Water Chiller Plant and Reception;
  4. The Liquidators have proposed a settlement and should the
     Landlord accept same, we should be in a position to lodge the
     second L&D account in April 2017;
  5. Shareholders are advised that the liquidation process is
     ongoing and that the trading in the shares of the company
     remains suspended and that a recovery for shareholders appears
     to be extremely unlikely.
  The statutory report, resolutions, circulars to creditors and L&D
  account can be downloaded from the website: www.chemliq.co.za


Pietermaritzburg
10 March 2017

Designated Advisor:
Grindrod Bank Limited

Date: 10/03/2017 09:45:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.