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LABAT AFRICA LIMITED - COVID-19 Impact & placing of Force Fuel (Pty) Ltd (Force Fuel) Into Business Rescue & Cautionary Announcement

Release Date: 08/05/2020 15:38
Code(s): LAB     PDF:  
 
Wrap Text
COVID-19 Impact & placing of Force Fuel (Pty) Ltd (“Force Fuel”) Into Business Rescue & Cautionary Announcement

LABAT AFRICA LIMITED
Incorporated in the Republic of South Africa
(Registration number 1986/001616/06)
JSE code: LAB ISIN: ZAE000018354
(“Labat”, “the Group” or “the Company”)

COVID-19 IMPACT AND PLACING OF FORCE FUEL PROPRIETARY LIMITED (“FORCE FUEL”) INTO
BUSINESS RESCUE AND CAUTIONARY ANNOUNCEMENT

Shareholders are referred to the announcement released on 24 April 2020 wherein
shareholders were advised that the Board of the Company were considering various
options in relation to one of its subsidiaries, namely Force Fuel, following the negative impact
on the volumes of wholesale fuel due to the lockdown pursuant to the COVID-19 pandemic.
After investigation, the directors of Force Fuel have resolved to put Force Fuel into business
rescue and appoint Johannes (John) Christiaan Henning as the Senior Business Rescue
Practitioner. The relevant documents have been filed with CIPC and the date the company
went into business rescue was 5 May 2020 We await the confirmation of the appointment
of the Practitioner from CIPC.

Shareholders are reminded that the long-term debt that was acquired as part of the Force
Fuel acquisition is ringfenced in Force Fuel and Labat has not signed any security or cross
guarantees in relation to this bank funding. The intention is to safeguard the business of
Force Fuel and return it to profitability in due course.

The Board will continue to keep shareholders abreast of the business rescue process as and
when needed.

Shareholders are accordingly advised to exercise caution when dealing in the Company’s
securities.

For and on behalf of the Board

BG van Rooyen                                                                       GRI Walters
Chief Executive Officer                                                       Financial Director

Johannesburg
8 May 2020

Sponsor
Arbor Capital Sponsors

Date: 08-05-2020 03:38:00
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