Publications
Partners
Cape Town - The curator of African Bank, Thomas Winterboer of PricewaterhouseCoopers SA, announced on Thursday that further conditions of its restructuring have now been fulfilled.
The JSE approved the registration of the Good Bank domestic medium-term note (DMTN) programme and its listing to be effective on April 4 2016.
Earlier in March Winterboer announced that the proposed restructuring of African Bank has received overwhelming support from its creditors.
Winterboer also said he is reasonably satisfied that measures are in place to enable Good Bank to arrange or maintain adequate credit life insurance for its loan book, including the Good Book, after the transaction effective date.
Winterboer expects to fulfil the remaining suspensive conditions before the anticipated transaction effective date for African Bank's restructuring. This remains subject to the fulfilment or waiver of the remaining suspensive conditions by the effective date.
However, final implementation of the African Bank restructuring is subject to further suspensive conditions to be met or waived by March 29 2016, or a later date agreed by Winterboer and Good Bank as long as it is no later than June 30 2016. If this deadline is not met, the exchange offers will not be
implemented and no existing debt instruments will be exchanged.
READ: Latest on African Bank restructuring
The remaining suspensive conditions outstanding include approval of the base prospectus for the Good Bank euro medium-term note (EMTN) programme by the UK Listing Authority and approval of the Swiss listing prospectuses.
Winterboer will provide further market updates as the African Bank restructuring develops.
On August 10 2014, African Bank Limited, which mainly offers unsecured personal loans to individuals in the medium to lower income segments, was placed under a rescue process of curatorship.
At the same time as African Bank was placed under curatorship, the then governor of the SA Reserve Bank (Sarb), Gill Marcus, communicated a restructuring proposal to the market. A detailed restructuring plan was published for comment in 2015. Offers to various classes of creditors were then launched in early February 2016.
The principal terms of the restructuring involve a new group to be established and the new holding company will receive a R10bn capitalisation from the Sarb, the Government Employees Pension Fund in South Africa and a consortium of South African banks.
A new company (Good Bank) will acquire part of the African Bank business. African Bank has made offers to its creditors, including offers to its senior and subordinated bondholders, to exchange certain bonds they currently hold in African Bank for new bonds in Good Bank - or for subordinated bondholders, shares in its holding company - cash payments and a residual claim in African Bank.
ALSO READ: African Bank narrows loss to R2.8bn
