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WEA - WG Wearne Limited - Update announcement relating to the Section 311 scheme of arrangement proposed to the creditors of the company WG WEARNE LIMITED (Incorporated in the Republic of South Africa) (Registration number: 1994/005983/06) JSE code: WEA ISIN: ZAE000078002 ("Wearne" or "the company" or "the group") UPDATE ANNOUNCEMENT RELATING TO THE SECTION 311 SCHEME OF ARRANGEMENT PROPOSED TO THE CREDITORS OF THE COMPANY Shareholders are referred to the announcement, dated 30 November 2010, and are advised that Wearne has applied to the High Court of the Republic of South Africa ("Court") to convene a meeting of its secured and concurrent creditors in terms of the provisions of Section 311 of the Companies Act 1973 (Act 61 of 1973) as amended, for the purposes of considering and, if deemed appropriate, accepting a scheme of arrangement between itself and those classes of creditors ("the scheme"). The group requires a moratorium on the repayment of all existing debt in respect of: - its concurrent creditors for a period of approximately 8 months from 1 January 2011 to 31 August 2011; and - in respect of its secured creditors for a period of approximately 24 months from 1 February 2011 to 31 January 2013. In terms of the moratorium, repayment of all concurrent creditors in respect of all amounts owing to them by the company prior to 1 January 2011, will be in 20 equal monthly instalments, amounting to 5% of the face value of the Arrangement Claims plus interest at 3% per annum, commencing on 5 September 2011. A scheme meeting of the abovementioned creditors has been summoned by the Court for 1 March 2011 ("meeting"). Subject to the scheme being approved by the creditors at the meeting, application will be made to the Court for the sanctioning of the scheme at an open hearing. The following timetable applies to the scheme: Application to convene the scheme meeting granted by Court on 8 February 2011 Notice of scheme meeting published in the press on 13 February 2011 Circular relating to the scheme posted to creditors on 15 February 2011 Last day to lodge form of proxy for the scheme meeting by 09h30 on 1 March 2011 Forms of proxy may be handed to the chairperson of the scheme meeting up to 10 minutes before the commencement of the scheme meeting to be held on 1 March 2011 Scheme meeting held at 14h00 on 1 March 2011 on at Nedbank Limited, 135 Rivonia Road, Sandton Chairperson`s report on scheme meeting available for inspection from 3 March 2011 Court hearing at 10h00 or as soon thereafter as Counsel may be heard to sanction the scheme on 15 March 2011 Results of Court hearing published in the press on 20 March 2011 Order of Court sanctioning the scheme registered by the Registrar on or about 17 March 2011 Operative date of the scheme, from the commencement of business on 22 March 2011 Randburg 15 February 2011 Designated Adviser Vunani Corporate Finance Date: 15/02/2011 15:05:02 Supplied by www.sharenet.co.za 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.
