Basil Read Holdings Limited (JSE:BSR) News - Update to the Basil Read Limited Bussiness 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 23 September 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 publish a monthly update
report in terms of section 132(3)(a) of the Companies Act 71
of 2008 (“Companies Act”). In this regard, twelve 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 fourteenth report covering the
period from September to November 2020, indicates that the
following matters remain unchanged:

 1. There are 2 (2) construction contracts that are still
   active versus twenty-seven (27) contracts at the beginning
   of rescue proceedings. The remaining contracts are
   Rosetta Water Works Plant – Umgeni Water and Medupi
   Buildings – Eskom. These contracts are expected to be
   completed in the first quarter of 2021

 2. The aggregate contingent liability in the form of
   guarantees have been reduced to R154 million versus R1.1bn
   at the beginning of the rescue proceedings.
3. BRL continues to pursue contract claims; however, the
   process remains protracted, costly, and has been adversely
   impacted by the Covid-19 related lockdowns.
   Notwithstanding these challenges BRL has been successful
   in obtaining favourable rulings with respect to certain
   of these claims. Unfortunately, Employers unlawfully
   continue withholding payments flowing from these rulings.
   Consequently, the Company has had to take additional legal
   action to enforce the rulings. The Mining Services and
   Developments Businesses continue operating.

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

5. 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.

6. Due to the ongoing business rescue process of BRL, the
   Company has not been able to release its most recent
   financial results for the period ending 30 June 2020 and
   will not be in a position to release financial results for
   the period ending 31 December 2020.



Bedfordview

22 December 2020
Company secretary
Emmaus Holdings (Pty) Limited


JSE Sponsor
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Date: 22-12-2020 09:05:00
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