'Bad lending book' to remain with Abil

11 Dec 2014

African Bank Investments Limited (ABL‚ Abil) said on Wednesday, 10 December 2014, that its curator has decided that the "bad lending book" will remain with Abil after the purchase of core lending assets by the "good bank".

Abil was placed under curatorship by the Reserve Bank in August following the collapse of its share price. Its shares were subsequently suspended.

The central bank said at the time that the "good lending book" of R26bn would be recapitalised by R10bn through a consortium of the major banks and the "bad book" of R17bn would be bought by the Reserve Bank for R7bn with collection on the bad book set to continue.

Abil said on Wednesday the good bank would be registered and a wholly owned subsidiary of a newly established holding company‚ HoldCo‚ would be listed on the JSE in "due course".

Curator Tom Winterboer said it was previously intended to conclude the restructuring exercise during the first quarter of 2015.

"While there has been significant progress made to date‚ the need to receive the regulatory approvals prior to the transfer of assets to good bank and the expected implementation and consent process means that it is more likely that the restructuring of African Bank will be completed after the first quarter of 2015."

The unsecured lender said that since the curatorship its lending risk criteria had been tightened‚ taking into account its circumstances and the broader economic situation in SA.

Source: BDpro via I-Net Bridge

Source: I-Net Bridge

For more than two decades, I-Net Bridge has been one of South Africa’s preferred electronic providers of innovative solutions, data of the highest calibre, reliable platforms and excellent supporting systems. Our products include workstations, web applications and data feeds packaged with in-depth news and powerful analytical tools empowering clients to make meaningful decisions.

We pride ourselves on our wide variety of in-house skills, encompassing multiple platforms and applications. These skills enable us to not only function as a first class facility, but also design, implement and support all our client needs at a level that confirms I-Net Bridge a leader in its field.

Go to: http://www.inet.co.za