BASIL READ HOLDINGS LIMITED - Basil Read Limited Placed in Business Rescue

Basil Read Limited Placed in Business Rescue

Basil Read Holdings Limited
Incorporated in the Republic of South Africa
Registration Number 1984/007758/06
Share Code: BSR ISIN: ZAE 000029781
(“Basil Read Holdings”) or “the company”)

BASIL READ LIMITED PLACED IN BUSINESS RESCUE

Basil Read Limited ("Basil Read") is a wholly owned subsidiary
of Basil Read Holdings, which houses the Construction
division.

Basil Read’s Construction division has for some time been
experiencing cash flow difficulties emanating from, amongst
other reasons, mismatched cash inflows and cash outflows.

As a mitigant to such difficulties, Basil Read endeavoured to
raise bridge funding from a consortium of lenders, for the
finalization of the construction contracts, against the
provision of security, pending anticipated cash inflows to be
sourced from the disposal of noncore assets, finalisation of
various contracts, and the successful implementation of
various operational action steps.

Regrettably,   after  protracted   negotiations   with   such
consortium of lenders, Basil Read was advised on 14 June 2018
that the majority of such consortium of lenders were not
prepared to make such bridge funding available to Basil Read
in an informal process, that is, outside of business rescue.

Absent such bridge funding, and pursuant to having obtained
the prerequisite legal and accounting advice, the Board
determined that Basil Read was or would be facing
circumstances constituting “financial distress” within the
meaning of the Companies Act 71 of 2008 (“Companies Act”).

As a result, the Board of Basil Read advised Basil Read
Holdings that it has commenced with voluntary business rescue
proceedings as provided for by section 129 of the Companies
Act.
Basil Read has also resolved to appoint Siviwe Dongwana of
Adamentem Chartered Accountants and John Lightfoot of Matuson
and Associates as business rescue practitioners.

The requisite documents were lodged with the Companies and
Intellectual Property Commission (“CIPC”) on 14 June 2018,
and Basil Read awaits confirmation of filing from the CIPC.

Shareholders will be updated as further material information
becomes available.


Boksburg
15 June 2018


Company secretary
Andiswa T Ndoni


JSE Sponsor
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