BK ONE LIMITED - Resolution of the board of Avalloy (Propritary) Limited to place Avalloy into business rescue

Resolution of the board of Avalloy (Propritary) Limited to place Avalloy into business rescue

BK One Limited

Incorporated in the Republic of South Africa

Registration Number: 2011/008103/06

Preference Share Code: BK1P

ISIN: ZAE000161352

“BK One”

RESOLUTION OF THE BOARD OF AVALLOY (PROPRITARY) LIMITED (“AVALLOY’ and/or the “Company”)
TO PLACE AVALLOY INTO BUSINESS RESCUE

BK One shareholders are advised that the Board of Avalloy have resolved to place Avalloy into business
rescue in compliance with the provisions of Section 150 of the Companies Act 71 of 2008 (the “Act”).
The first meeting of creditors in respect of the Company is being convened to be held on 13 September
2013; first meeting of employees representatives and shareholders will be held in conjunction with and
simultaneously to the first meeting of creditors.

As at 28 February 2013, Avalloy had a face value of c.R45.04 million comprising a loan and equity
component, representing approximately 28% of BK One’s investment portfolio.

Avalloy’s general funding ceased when its largest shareholder, SA Superalloys (Pty) Limited and its
ultimate holding company Basileus Investments (Pty) Limited, were placed under business rescue in July
2012. Since this date, Avalloy’s Board has actively sought further investment as part of a broader
strategic review. It is as a result of these consultations with stakeholders and possible funders that the
Board of Avalloy has resolved to place the Company into business rescue.

Pursuant to his appointment, the business rescue practitioner (“BRP”) assumed management control of
the Company in conjunction with the Company’s directors and management.

The BRP has published a business rescue plan to stakeholders outlining a restructuring of the business.
As part of this plan, the Avalloy Board have successfully managed to secure post commencement
funding as contemplated in Section 135 of the Act however this will be contingent on the successful
implementation of the business rescue plan. The BRP has stated that he is of the view that there is a
reasonable prospect of rescuing the Company.

The Board of BK One continue to engage with the BRP to monitor the progress of the implementation of
the proposed business rescue plan and will revert to shareholders following the completion of the
creditors and shareholders meetings currently envisaged to be held on 13 September 2013. Accordingly,
shareholders are advised to continue to exercise caution when dealing in the BK One’s securities until a
comprehensive announcement in this regard can be made.
Cape Town

9 September 2013



Sponsor

Nedbank Capital

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