Ellerine applies for 'rescue'
Fin24

Ellerine applies for 'rescue'

2014-08-07 15:56

Johannesburg - The furniture retailing arm of troubled South African lender African Bank Investments (Abil) [JSE:ABL] has applied for temporary protection from creditors.

Ellerine Furnishers said on Thursday in a regulatory filing it had applied for "voluntary business rescue" under South Africa's Companies Act.

African Bank, which shocked the market on Wednesday when it said it needed R8.5bn in new capital to shore up its balance sheet, acquired Ellerine in 2008.

Ellerine is the parent company of Ellerine Furnishers. Under South African law, business rescue provides temporary protection of a company's property from creditors.

Comments
  • Kurt Kutz - 2014-08-07 16:00

    Eish!

      Made-In SA - 2014-08-07 16:07

      Eish also for the taxpayer who will probably bail Abil out.

  • Ramon Gokaran - 2014-08-07 16:37

    does it not end how much lower can it go?

      Mike Heyns - 2014-08-07 17:44

      You'll be surprised, don't hold your breath!! But then again, wasn't it our fearless ministers that advocated that we "handled" the recession quite well? Maybe we are just a bit slower is my view!!

  • Sipho Tshakela - 2014-08-07 16:42

    This is not good for our already ailing economy!

      clinthenning - 2014-08-07 18:58

      A very matured comment Sipho

  • Daniel Mah - 2014-08-07 16:48

    What took them so long, now Abil as a whole might sink

  • Andrew Stockton - 2014-08-07 16:53

    Oh dear - Don't Ellerine Holdings have quite a financial stake in Constantia Insurance ?

  • Mike Heyns - 2014-08-07 17:46

    The dominoes are busy falling .....................

  • Carol Harvey - 2014-08-08 13:45

    Too much money lent out to too many who cannot afford to pay back.

      nicolas.kritzinger - 2014-08-09 07:22

      Yep!!!

  • Anita Mathias - 2014-08-09 08:47

    Ellerines had a good innings of luring poor people into enormous debt they could obviously not afford.... then getting unscrupulous debt collectors in to threaten these people into paying grossly over hiked interest on their debt and arranging unlawful and garnishing orders on meagre wages....... they deserve to drown in a bucket of their own debt now... with no help from anyone. In 2010 I tried to help a casual worker who was being hounded by debt collector for Elllerines debt.....they sold a man without a fixed job who lived in a shack a bedroom suite which cost in excess of R 9000 with the monthly interest added it the final cost was way over R 20000. So for your own greed and stupidity ..... good you suffer now!!!!!!

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