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GROUP FIVE LIMITED - Monthly update on the business rescue proceedings, disposals, post commencement finance and business rescue plan

Release Date: 20/06/2019 13:30
Code(s): GRF     PDF:  
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Monthly update on the business rescue proceedings, disposals, post commencement finance and business rescue plan

Group Five Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1969/000032/06)
Share code: GRF ISIN: ZAE000027405
("Group Five" or "the Company" or "the Group")

MONTHLY UPDATE ON THE BUSINESS RESCUE PROCEEDINGS, DISPOSALS, POST
COMMENCEMENT FINANCE AND BUSINESS RESCUE PLAN

Shareholders are referred to the SENS announcement dated 14 May 2019 which contained
the first monthly update on the business rescue proceedings.

As was announced on SENS on 11 June 2019, a shareholder update meeting on the business
rescue proceedings was held today, 20 June 2019. The presentation given in that forum is
available on the Company’s website (www.g5.co.za). Shareholders are guided towards the
statement from the business rescue practitioners (“BRPs”) provided in that presentation that
“at this time we are of the view that it is a very unlikely outcome that the shareholders of [the
Company] will receive any value back on their investments.”

Due to the complexity of the business rescue proceedings, the BRPs are seeking the consent
of a majority of the creditors to extend the publication date of the business rescue plan to 30
August 2019.

The BRPs have in the meantime secured further post commencement finance funding from
the lender consortium and the business rescue process remains on track.

In addition to the disposals announced in the 14 May 2019 SENS announcement, further
binding agreements have been entered into or are in the process of being drafted for the
disposal of:

     •   the African SMEIP business and shares in subsidiary companies;
     •   the Northpoint property development;
     •   various properties not being utilised in the ordinary course of business; and
     •   plant & assets not being utilised in the ordinary course of business;

which disposals will if completed realise total proceeds of in excess of c.R1 billion on a
cumulative basis. Some of the above disposals are subject to concluding final binding
agreements and some to fulfilling conditions precedent in final binding agreements in order to
be concluded. Proceeds received from assets subject to security agreements will be utilised
to reduce the relevant secured debt, and the balance of unsecured proceeds has been (or will
be) utilised to settle working capital requirements.

Shareholders are further advised that regular updates of the business rescue proceedings are
available on the Company’s website (www.g5.co.za)

20 June 2019

Sponsor

Nedbank Corporate and Investment Banking

Date: 20/06/2019 01:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.

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