‘Good Bank’ gets support
African Bank has received the “overwhelming support” of creditors for its proposed restructuring, the bank said on Wednesday.
|||Cape Town - African Bank has received the “overwhelming support” of creditors for its proposed restructuring, the bank said on Wednesday.
A statement from the mass market micro-lender that was put under curatorship in August last year said more than 95 percent of holders of debt, both senior and subordinated, were taking up the offer to exchange existing debt instruments for notes in the “Good Bank” to be created from the assets of the failed bank.
The statement said this was a significant milestone, but a number of conditions still needed to be fulfilled.
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The consent of the minister of finance was required and the proposed Good Bank notes must still be listed on the Johannesburg Stock Exchange, the London Stock Exchange and Swiss Stock Exchange as applicable.
The target date for the commencement of the Good Bank operations and settlement of the exchange offers remains April 4. The curator of the bank, Tom Winterboer, thanked the creditors for their continued support.
AFRICAN NEWS AGENCY