Basil Read Holdings Limited (JSE:BSR) News - 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 announcement released on
SENS on 26 March 2021 in relation to the Business Rescue
proceedings for Basil Read Limited (“BRL”), a subsidiary of
the Company.

Given that the Business Rescue proceedings of BRL have not
been concluded within three months of the commencement thereof
the Business Rescue Practitioners (“BRPs”) publish a monthly
update report in terms of section 132(3)(a) of the Companies
Act 71 of 2008 (“Companies Act”). In this regard, seventeenth
update reports 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 latest report being the report covering the period from
March 2021 to July 2021, indicates the following matters:
 1. The Group continued operating steadily despite Covid-19
   challenges and continues with monitoring the implemented
   health protocols to limit the spread of virus.

 2. The construction contracts that existed at the
   commencement of the business rescue proceedings have been
   completed, achieving one of the key objectives of the
   business rescue plan. A number of the completed contracts
   are in the defects liability period, which is anticipated
   to end in March 2022


 3. The quantum of aggregate contingent liability in the form
   of construction guarantees have been reduced to R119 R93
  million versus R1.1bn at the beginning of the rescue
  proceedings

4. BRL continues pursuing contract claims a. However, the
  claims process has been protracted, costly, and has been
  adversely impacted by the Covid-19 related lockdowns. BRL
  has been successful in obtaining favourable rulings with
  respect to certain of these claims, notwithstanding these
  challenges. Unfortunately, Employers unlawfully continue
  withholding payments flowing from these rulings, therefore
  legal action to enforce the rulings is required.  Thus,
  the timing of receipts of funds for these claims remains
  uncertain.

5. The BRPs have reported no further developments in the
  realisation of the non-core assets given the prevailing
  depressed economic conditions domestically and globally
  because of the Covid-19 pandemic.         

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

7. From a Basil Read Holdings Limited perspective, the
  implementation of the Business Rescue Plan of Basil Read
  Limited continues. However, its effect at a group level
  remains uncertain 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.

8. Due to the ongoing business rescue process of BRL, the
  Company will not be in a position to release interim
  financial results for the period ending 30 June 2020.

Bedfordview

30 July 2021

Company secretary
Emmaus Holdings (Pty) Limited
JSE Sponsor
Grindrod Bank Limited

Date: 30-07-2021 11:30:00
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