ALERT STEEL HOLDINGS LIMITED - New Court Order and Liquidation Application

New Court Order and Liquidation Application

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


New court order re business rescue proceedings of Alert Steel, applications for liquidation and
further cautionary announcement

Court order
Shareholders are referred to the announcement released on SENS on 9 July 2014 relating to the
business rescue proceedings of Alert Steel (Pty) Ltd (in business rescue) (‘Alert Steel’), a wholly
owned subsidiary of Holdings and Holdings (collectively ‘the companies’) in terms of Section 129 of
the Companies Act, 2008 (‘the Act’), as amended.
On 10 July 2014 Southern Palace Investments 265 (Pty) Limited and Cannistraro Investments 282
(Pty) Limited (‘the applicants’) filed a notice of motion against the following eight respondents
(collectively ‘the respondents’):

Alert Steel (Pty) Limited (in business rescue) – 1st respondent
Zaheer Cassim – 2nd respondent
Alert Steel Holdings Limited – 3rd respondent
Juanito Damons – 4th respondent
Mohamed Javed Gani – 5th respondent
The Companies and Intellectual Property Commission – 6th respondent
Mercantile Bank Limited – 7th respondent
Credit Guarantee Insurance Company Limited – 8th respondent

In the notice the applicants applied to the High Court as a matter of urgency to be heard on 15 July
2014, for an Order in the following terms:
    1. A Rule Nisi do issue calling upon the Respondent/s to show cause, if any, before the High
       Court sitting in Pretoria on the 22nd day of July 2014 at 10h00 as to why an Order should not
       be granted in the following terms:
                                                                                                
        1.1 An order setting aside the Resolution passed by the First Respondent on or about the 9th
            of May 2014, purportedly in accordance with Section 129 of Act 71 of 2008 (hereinafter
            referred to as ‘the Act’), placing the First Respondent into Business Rescue (hereinafter
            referred to as ‘the Resolution’);
        1.2 An Order declaring that any process which followed from the Resolution under the guise
            of Business Rescue, be deemed to be null and void;                                                                                                    th
        1.3 An Order declaring that all actions and steps of the Second Respondent between the 9th
            of May 2014 and the final adjudication of this matter in relation to the First Respondent be
            deemed to be of no force and effect.

    2. That the above operate with immediate effect, pending the return date of this application;
    3. That the Applicants non-compliance with the forms of the Uniform Rules of Court be
       condoned and this matter be heard as one of urgency in accordance with Rule 6 (12) of the
       Uniform Rules of Court;
    4. That the Applicants be granted such further and/or alternative relief as the Court may deem
       fit;
    5. Cost of the application be borne by the Applicants, unless opposed.

By agreement between the parties acting on behalf of various Respondents and the Judge sitting in
Court A at the Palace of Justice on 15 July 2014, the matter was postponed to 22 July 2014.

Application for liquidation by CGIC
On 15 July 2014 the 8 respondent, Credit Guarantee Insurance Company Limited (‘CGIC’), applied
urgently that Alert Steel be wound up.

Response by business rescue practitioner
On 15 July 2014, the business rescue practitioner (“BRP”) of Alert, Mr Zaheer Cassim (the 2nd
Respondent), became aware of an alleged perfection by Mercantile Bank in respect of their securities,
resulting in the BRP being deprived of control of the assets of Alert and al stores being locked down
and staff being denied access to the various premises.

The BRP was not consulted in respect of the steps taken by Mercantile Bank, did not consent thereto
and reserves all his rights.

As a result of the aforegoing, the BRP is of the opinion that there is no longer a reasonable prospect
for Alert to be rescued and he will, accordingly, be applying to the court in terms of Section 141(2) of
the Companies Act, 2008, for an order in the following terms:

    -   discontinuing the business rescue proceedings of Alert commenced in terms of Section 129 of
        the Companies Act, 2008; and

    -   placing Alert into liquidation (under final winding up) in the hands of the Master of the High
        Court.

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.

16 July 2014
Pretoria


Designated Adviser
Exchange Sponsors

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