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Update on Business Rescue Proceedings of Alert Steel and further cautionary announcement
ALERT STEEL HOLDINGS LIMITED (SUSPENDED)
(Incorporated in the Republic of South Africa)
(Registration number 2003/005144/06)
JSE code: AET ISIN: ZAE000170395
(“Holdings”)
Update on Business Rescue Proceedings of Alert Steel and further cautionary announcement
Shareholders are referred to the announcement released on SENS on 4 July 2014 relating to the
business rescue proceedings of Alert Steel (Pty) Ltd (‘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.
The creditors meeting of Alert Steel was adjourned on 4 July 2014 sine die without conducting any
business as directed by the Court.
The application in the High Court was brought by Southern Palace Investments 265 (Pty) Limited (the
applicant). The eight respondents were as follows:
Alert Steel (Pty) Limited – 1st respondent
Cassim, Zaheer – 2nd respondent
Alert Steel Holdings Limited – 3rd respondent
Damons, Wauneta – 4th respondent
Gani, Mohamed Javed – 5th respondent
The Companies and Intellectual Property Commission – 6th respondent
Mercantile Bank Limited – 7th respondent
Credit Guarantee Insurance Company Limited – 8th respondent
The wording of the order granted by the High Court of South Africa, Gauteng Provincial Division,
Pretoria on 3 July 2014, a copy of which was only supplied by the Business Rescue Practitioner (the
2nd respondent) on 8 July 2014, reads as follows:
“IT IS ORDERED THAT:
Pending a return day of 22 July 2014 the relief is granted in terms of prayers 2 to 4 of the notice of
motion (which read as follows):
- “Directing the Business Rescue Practitioner to adjourn sine die (or to a date to be determined by
this Honourable Court) the meeting to be held on 4 July 2014 without conducting any business at
that meeting, save for the adjournment thereof in terms of this order, until the outcome of an
application (to be launched within 10 days hereof) to determine the validity of the “resolution”
allegedly placing the company, the First Respondent, in business rescue;
- Interdicting and restraining the company’s Business Rescue Practitioner, Second Respondent,
from taking any steps in pursuance of Sections 151 and 152 of the Companies Act, No. 71 of 2008,
pending the outcome of the application to set aside the said “resolution”, which resolution was
allegedly passed by the company, the First Respondent, on 9 May 2014, in terms of Section 129
of the Companies Act, No 71 0f 2008 in accordance with Section 130 of the Companies Act, No
71 of 2008;
- Directing the Business Rescue Practitioners, the second and fourth respondents, to deliver within
ten days of this order, to the attorneys of the Applicant, copies of the “levels of authority” (or
similarly named) document(s) in their possession of the which prohibit directors of subsidiaries of
fourth respondent from passing resolutions placing themselves in business rescue without the
authorisation of the board of directors of the holding company.”
in the following terms:
1. Applicant is to obtain physical service on all respondents of the terms of this order and of the
founding papers herein by not later than close of business on 7 July 2014.
2. Each respondent is ordered, if it intends to oppose this application, to:
2.1. Enter an appearance to defend on or before 8 July 2014;
2.2. File an answering affidavit by 11 July 2014;
3. The applicant will file a replying affidavit by Wednesday 16 July 2014, and
4. The matter will be set down on Thursday 17 July 2014 for Tuesday 22 July 2014 to determine
whether the relief granted by this order is final or not.
5. Costs are reserved.”
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.
9 July 2014
Pretoria
Designated Adviser
Exchange Sponsors
Date: 09/07/2014 11:28:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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