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Update regarding business rescue proceedings and continued suspension of shares
Chemical Specialities Limited
Incorporated in the Republic of South Africa
Registration number 2005/039947/06
Share code: CSP &CSPP
ISIN: ZAE000109427 & ZAE000184305
("Chemspec" or "the Company")
Update regarding business rescue proceedings and continued
suspension of shares
Shareholders are referred to the announcements released on SENS on
11 March 2015, 17 March 2015, 14 April 2015, 21 May 2015 and 29 May
2015 regarding the commencement of voluntary business rescue
proceedings for the Company as provided for by section 129 of the
companies Act, No 71 of 2008 as amended.
The Business Rescue Practioners (“BRPs”) have received two
extension and will publish the business rescue plan for Chemspec,
by 30 June 2015, unless they apply for a further extension.
Post-Commencement Finance (PCF) has been provided by two of the
Company’s funders, who are substantial creditors of the Company.
PCF funding has also been provided by an insurer of certain of
Chempsec’s Creditors. The PCF funding has been extended from time
to time, dependant on the trading of the business as well as the
interest of strategic investors. The current extension is until the
17th of June 2015. The BRPs are confident that this period will be
extended considering what is set out below.
The BRPs have received six non-binding offers for the whole
business as a going concern and/or various select subsidiaries or
divisions of the business. Several buyers are in active due
diligence, having retained various external accounting and legal
advisors to assist them to complete their due diligence. The
deadline for binding offers is Friday, 12 June 2015. We expect to
receive several binding offers and will then negotiate with the
parties in order to sign a binding transaction before the end of
June.
They have also obtained a liquidation value for the assets of the
S.A. business, from a reputable firm of valuators.
The BRPs have assessed the viability and sustainability of the
various divisions/branches and wholly owned subsidiaries and
considering the financial constraints, have undertaken certain
restructuring actions to contain costs and continue trading. Since
filing for Business Rescue, 50 employees have exited the business.
Considering the interest of the potential investors, and the costs
of a formal liquidation, the BRPs believe that their efforts to
conclude a transaction as a going concern (outside a liquidation
process) will be beneficial to all the creditors of the Company.
The PCF funding has permitted the business to continue to trade as
best as possible in the circumstances, to preserve its underlying
value.
Trading in both the ordinary and preference shares of the Company
will remain suspended until completion of the voluntary business
rescue proceedings.
Durban
11 June 2015
Designated Advisor:
Grindrod Bank Limited
Date: 11/06/2015 02:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
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indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
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