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Notice to apply for termination of business rescue proceedings and to place the Company into provisional Liquidation
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")
NOTICE TO APPLY FOR TERMINATION OF BUSINESS RESCUE PROCEEDINGS AND
TO PLACE THE COMPANY INTO PROVISIONAL LIQUIDATION
Shareholders are referred to the announcements released on SENS
relating to the business rescue proceedings of the Company, the
last of which was released on 26 June 2015, and are advised that,
after having carefully considered all the facts relevant to the
Company’s financial position and the prospects of the Company being
rescued as contemplated in Chapter 6 of the Companies Act No. 71 of
2008 (“the Act”), the Business Rescue Practitioners (“BRP’s”) have
concluded that there is no reasonable prospect for the Company to
be rescued.
Accordingly the BRP’s, in terms of Section 141(2)(a) of the Act,
will apply to the High Court for an order to discontinue the
business rescue proceedings in respect of the Company and to place
the Company into provisional liquidation.
The application for provisional liquidation will be heard as a
matter of urgency in the High Court of South Africa, Kwazulu-Natal,
Durban on Wednesday the 5th of August 2015.
A copy of the application papers have been placed on the Company
website hosted at www.chemspecpaint.com, under the business rescue
tab.
Regrettably the BRPs have come to the above conclusion, based on,
inter alia, the following facts:
1. Notwithstanding the BRPs having secured an international
purchaser for the entire South African business and certain of the
international subsidiaries, including the United States of America,
the suspensive condition to procure an acceptable lease with the
landlord of the manufacturing premises in Kwazulu-Natal was not
achieved and the offer lapsed.
2. The Post-Commencement Funders who have supported the business
rescue process from inception, withdrew their funding line on the
31st of July 2015 as a result of the sale not being concluded.
3. FirstRand Bank Limited obtained an order in the High Court of
South Africa, Kwazulu-Natal Durban on 3 August 2015 to perfect
General Notarial Bond number: BN052026/06 over all the Company’s
corporeal and incorporeal movable property, including stock of any
nature.
In view of the aforementioned, the BRP’s conclusion is that there
is no reasonable prospect for the Company to be rescued as provided
for in terms of Section 128 of the Act and they will therefore
submit the following documents to the Companies and Intellectual
Property Commission (“CIPC”):
1. CoR125.2 – the notice of termination of business rescue
proceedings; and
2. The notice to affected parties relating to the application for
termination of the business rescue proceedings and the Company
being placed into provisional liquidation,
Where after the High Court application will be issued and enrolled
for hearing.The relevant notices will be posted on the company website:
www.chemspecpaint.com
Please direct all enquires to the following email address:
businessrescue@chemspecpaint.com
Durban
3 August 2015
Designated Advisor:
Grindrod Bank Limited
Date: 03/08/2015 05:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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