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 announcements previously
released on SENS on 8 January 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 reports being the eleventh and twelfth report
covering the period from January to May 2020, provides for
the following significant developments:
 1. There are three (3) construction contracts that are still
   active versus twenty-seven (27) contracts at the beginning
   of rescue proceedings. Majority of the contracts have been
   completed, ceded or descoped amicably. Only four (4)
   contracts were terminated

 2. The aggregate contingent liability in the form of
   performance and retention guarantees have been reduced to
   R264.8million versus R1.1bn at the beginning of the rescue
   proceedings.

 3. The business has been significantly impacted by Covid-19
   virus and the subsequent national state of emergency
  declared by the South African Government on 26 March 2020
  and State of Emergencies declared in Botswana, Namibia,
  Lesotho and Swaziland.   This resulted in all site
  activities being suspended.

4. Some site activities were allowed to resume at the
  beginning of May 2020, but it is anticipated that this
  disruption will delay the completion of the remaining
  contracts by a minimum of two months

5. BRL continues to pursue contract claims; however, the
  process remains time consuming, tedious and costly. The
  Company has however managed significant success in the
  resolution of many such claims. The claims processes have
  also been impacted by the Covid-19 related lockdowns,
  particularly the matters that were to be heard in Courts
  or Arbitration. The resumption of these matter remains
  uncertain as there has not been clarity on when the Courts
  will resume allocating dates.

6. The Mining Services and Developments Businesses, were also
  adversely impacted by the pandemic with various clients
  declaring force majeure and certain long-term contracts
  being terminated with several retrenchments as a result,
  particularly within the Mining Business.

7. However, these businesses have managed to preserve cash
  in order to remain sustainable despite the impact of this
  pandemic.

8. The business rescue practitioners remain of the view that
  a full implementation of the Plan will achieve a better
  result than a liquidation.
 9. 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.



Bedfordview

19 June 2020


Company secretary


Emmaus Holdings (Pty) Limited


JSE Sponsor
Grindrod Bank Limited

Date: 19-06-2020 05:15:00
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