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 Date: 16/07/2014 10:40:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 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