BASIL READ HOLDINGS LIMITED - Update to the Basil Read Limited Business Rescue Plan

Update to the Basil Read Limited Business Rescue Plan

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”)

UPDATE TO THE BASIL READ LIMITED BUSINESS RESCUE PLAN

Shareholders are referred to the announcements previously
released on SENS regarding the Basil Read Limited Business
Rescue proceedings and are advised that the Business Rescue
Plan is in the process of being implemented.

Given that the Business Rescue proceedings of Basil Read
Limited have not been concluded within three months of the
commencement thereof the Business Rescue Practitioners
publish a monthly update report in terms of section 132(3)(a)
of the Companies Act 71 of 2008 (“Companies Act”). In this
regard, the Fifth and Sixth Updates are available on
www.matusonsassociates.co.za/basilread/    along   with   the
Business Rescue Plan and these Update Reports should be read
in conjunction with the Business Rescue Plan.

The Fifth and Sixth Update Reports covering the period of
February to May 2019, provided significant developments
relating to the following:

1.   As previously reported the majority of the over 20
     construction contracts at the commencement of the
     business rescue have been completed or terminated. Of
     the remaining contracts, the status is as follows:
        a. Three (3) contracts continuing to completion.
        b. Five (5) contracts are in the process of being
           descoped or ceded to other contractors.
        c. Three (3) have been handed over to clients and the
           company is engaged in defects remediation process.
2.   The performance guarantees have been reduced from R1.1
     billion at the outset of business rescue proceedings to
     approximately R744 million. Negotiations with various
     employers are on ongoing to ensure that no further calls
     on guarantees are made. This significantly reduces the
     contingent liability risk on the business.
3.   The company continue to pursue a number of contractual
     claims that are in excess of R200million. Year to date
     2019, claims totaling R34million have been settled and
     company utilized those proceeds towards the repayments
     of Post Commencement Finance.

4.   With the exception of the employees required to assist
     with the completion of the contracts (including the
     various Medupi contracts), and the remaining staff at
     Head Office, all other employees have been retrenched
     and will receive their full retrenchment packages.
5.   The company continued to sell via auctions, all surplus
     Plant and Equipment (“P&E”). The proceeds of these sales
     will be utilised to repay inter-alia, Post-Commencement
     Finance (“PCF”) advanced, retrenchment costs and other
     business rescue related costs 2019.
6.   The Group has found new premises and intends to vacate
     the Basil Read Campus in order to substantially reduce
     the costs for the Company and its continuing business.
7.   The BRPs continue to pursue expressions of interest from
     a number of parties for the remaining non-core assets.
     With respect to the mining and development businesses,
     The BRPs have in turn appointed an independent sales
     advisor has been appointed to value the business and to
     adjudicate on any potential offers received. This
     process is ongoing.


The business rescue practitioners remain of the view that a
full implementation of the Plan will achieve a better result
than a liquidation.

From a Basil Read Holdings Limited perspective, the
implementation of the Business Rescue Plan continues;
however, its effect at a group level remains until it is
completed. Therefore, the suspension will remain in place
until the implementation is complete and the effects on the
group can be determined.
Boksburg
28 June 2019

Company secretary
Emmaus Holdings (Pty) Limited


JSE Sponsor
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Date: 28/06/2019 07:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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