BRIKOR LIMITED - Notice of NUM Application for Business Rescue of Brikor Limited and Cautionary Announcement

Notice of NUM Application for Business Rescue of Brikor Limited and Cautionary Announcement

BRIKOR LIMITED (IN PROVISIONAL LIQUIDATION)
 (Incorporated in the Republic of South Africa)
(Registration number 1998/013247/06)
JSE Share code: BIK ISIN: ZAE000101945
("Brikor” or “the Company”)


Notice of NUM Application for Business Rescue of Brikor Limited and Cautionary Announcement

Shareholders are referred to the various cautionary announcements released over the past year which
culminated in the provisional liquidation of Brikor, the last of which was published on 25 November 2013.
On 16 May 2014 the Kwa-Zulu Natal High Court (‘the High Court’) adjourned the matter until 21 November
2014. The business operates under the supervision of the provisional liquidators.

Shareholders are advised that, on 17 November 2014, The National Union of Mineworkers (‘NUM’) (‘the
Applicant’), issued an Application in terms of Section 131 of the Companies Act, 2008 under case number
13293/2014 of the High Court of South Africa, KwaZulu-Natal Local Division (Durban) which shall be
heard at 10H00 on 20 January 2015 for an order on the following terms:

1. The First Respondent is placed under supervision and is subject to business rescue proceedings by
   order of this Court.

2. Henk Strijdom is appointed as the interim business rescue practitioner of the First Respondent in
   terms of Section 131(5) of the Companies Act.

3. The First Respondent is to pay the unopposed costs of this application, save that any person who
   opposes relief sought herein is ordered to pay the costs occasioned by such opposition.

4. Further or alternative relief is granted.

Purpose and Context of the Application
5. The purpose of the application is to obtain orders placing the First Respondent under supervision and
   commencing business rescue proceedings as contemplated in Section 131(4)(a)(i) or (iii) of the new
   Companies Act, 2008.

6. The First Respondent is financially distressed because it will not be able to pay all its debts as they
   become due and payable in the next six months.

7. There is a reasonable prospect of rescuing the Company, due to the following reasons:
    7.1. Since being provisionally wound up, the First Respondent has continued trading, and has returned
          to profitability. Due to better trading conditions in 2013 and 2014, the First Respondent has
          managed to achieve gross profit margins of 28%.
    7.2. As at 6 November 2014, the First Respondent had a positive cash balance of R 62 million.
    7.3. Mr Garnett Van Niekerk Parkin, a director of the First Respondent and its majority shareholder
         has committed himself to injecting R 40 million worth of capital into the First Respondent once
         the First Respondent has been placed under business rescue.
    7.4. The First Respondent’s management has prepared a five year forecast which forecasts that it will:
        7.4.1.Maintain positive annual cash balances for most of the forecast period until February 2017;
        7.4.2.Repay the Third Respondent in full by February 2017;
        7.4.3.Return to a positive cash balance by February 2018 and maintain that until February 2019.

The Parties
8. The Applicant
   8.1. The Applicant is The National Union of Mineworkers, a trade union registered in accordance with
         section 96 of the Labour Relations Act 66 of 1995, with its head office at 7 Rissik Street,
         Johannesburg, Gauteng.
   8.2. 345 of the First Respondent’s employees are members of the Applicant. This figure represents
         59.6% of the total number of employees employed by the First Respondent.
   8.3. The Applicant is an ‘affected person’ as defined in Section 128 (1) (a)(i) of the Companies Act
         because it is a registered trade union that represents the employees of the First Respondent.
   8.4. The Applicant’s motivation with the Application is to try and save its members’ jobs and to prevent
         the knock-on effects a liquidation will have on communities in the East Rand where high levels of
         unemployment is prevalent.

9. The Respondents
   9.1. The First Respondent is Brikor Limited. The Company was provisionally wound-up by an order of
         this Court on 30 July 2013. The Company’s listing on the JSE has accordingly been suspended.
   9.2. The Second Respondent is The Companies And Intellectual Property Commission (‘CIPC’);
   9.3. The Third Respondent is Firstrand Bank Limited. The Third Respondent is a creditor of the First
         Respondent by virtue of various loans advanced to the first respondent.

The trading in the shares of the Company on the JSE will remain suspended. Shareholders are advised to
continue exercising caution in trading the Company's shares until a further announcement is made.

21 November 2014
Durban


Designated Advisor
Exchange Sponsors

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