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Notice of application for business rescue of Alert Steel Holdings Limited and cautionary announcement
ALERT STEEL HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2003/005144/06)
JSE code: AET ISIN: ZAE000092847
(“Alert” or “the company”)
Notice of application for business rescue of Alert Steel Holdings Limited and cautionary
announcement
Shareholders are referred to the SENS announcement dated 12 May 2014 in which
shareholders were informed that Alert Steel (Pty) Ltd (‘Alert Steel’), a wholly owned subsidiary
of Alert, has begun with business rescue proceedings as provided for by Section 129 of the
Companies Act, 2008 (Act 71 of 2008) as amended (“the Companies Act”).
Shareholders are informed that Alert received notification from Mercantile Bank Limited
(“Mercantile”) on 12 May 2014 that Mercantile demands immediate repayment of R 104 million
plus interest from Alert in terms of a joint and several suretyship provided by Alert to Mercantile
in respect of the facility provided by Mercantile to Alert Steel.
The main income that Alert currently receive is interest payments by Alert Steel to Alert, which
had been stopped after Alert Steel applied for business rescue.
Given the above factors the Board of Alert met yesterday and concluded that although Alert is
financially distressed, there appears to be a reasonable prospect of rescuing Alert. The
decision has therefore been taken that Alert voluntarily begin business rescue proceedings as
provided for by Section 129 of the Companies Act. The Board resolution to this effect is in the
process of being filed with the Companies and Intellectual Properties Commission. The Board
of Alert is of the opinion that the implementation of business rescue will afford the directors
the opportunity to develop and implement a business rescue plan in a manner that will optimise
the likelihood of Alert continuing as a going concern.
Shareholders are advised that the full impact of the above application is still to be determined
and may have a material effect on the price of the Company’s securities. Accordingly,
shareholders are advised to exercise caution when dealing in the Company’s securities until
further information is provided.
15 May 2014
Pretoria
Designated Adviser
Exchange Sponsors.
Date: 15/05/2014 09:55:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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