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 22 December 2020 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, fifteen
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 fifteenth, indicates the following
matters:
 1. The Group continued operating steadily despite Covid-19
   challenges and has implemented health protocols to limit
   the of virus. . In this regard, a cumulative total of 94
   employees tested positive for Covid-19, 89 of whom have
   since recovered and 1 deceased..

 2. The status of the two   (2) active construction contracts
   reported previously is as follows:
     a. Umngeni Water - Rosetta Water Treatment Plant project
         was completed in the beginning of March 2021.

     b. Eskom - Medupi Buildings project is anticipated to
         to be completed in May 2021

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

4. BRL continues to pursue contract claims as it relies
  heavily on claims proceeds to meet its commitments. .
  However, the claims process has been protracted, costly,
  and has been adversely impacted by the Covid-19 related
  lockdowns. The BRPs have 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            additional legal
  action to enforce the rulings are 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.          However, the BRPs are
  optimistic that this may change as the economic conditions
  improve.

6. The   Mining     business   has    entered     preferred       bidder
  negotiations with clients in South Africa and Botswana.
  These negotiations when concluded in the coming weeks,
  will effectively increase the order book by more than R1.5
   bn and will replace the two major contracts that were
   terminated at the beginning of the Covid-19 pandemic
   lockdowns in Q1 2020.



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

 8. 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.

 9. Due to the ongoing business rescue process of BRL, the
   Company will not be in a position to release financial
   results for the period ending 31 December 2020.

Bedfordview

1 April 2021

Company secretary
Emmaus Holdings (Pty) Limited



JSE Sponsor

Grindrod Bank Limited

Date: 01-04-2021 03:45:00
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.