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Curator: African Bank restructuring complete after approvals received
By Caroline Salls
Pittsburgh, April 1 – African Bank Ltd.’s restructuring has been completed, according to a news release.
African Bank’s curator said the restructuring was completed after the Minister of Finance provided formal consent and “Good Bank’s” registration as a bank was approved by the Registrar of Banks.
In addition, the Johannesburg Stock Exchange (JSE) approved the registration of the Good Bank domestic medium-term note (DMTN) program and the listing of the Good Bank DMTNs on April 4.
The curator also confirmed in writing that he is reasonably satisfied that an arrangement is in place with a cell captive insurer, other registered long-term insurer, or otherwise, that will enable Good Bank to arrange or maintain adequate credit life insurance for its loan book.
On March 31, investors in debt securities of African Bank listed on the JSE were advised of the redemption and consequential cancellation of all of the outstanding notes issued by African Bank under its ZAR 25 billion existing DMTN program on the April 4 transaction effective date as a result of implementation of the exchange offer included in the restructuring.
The securities in African Bank listed on the JSE will remain suspended from trading until the implementation of the relevant exchange offers under which the existing securities will be redeemed and cancelled on April 4.
African Bank will be renamed Residual Debt Services Ltd. on or shortly after April 4.
As previously reported, African Bank’s curator issued exchange offer documents to creditors in February, including a proposal to exchange claims against African Bank for new debt in Good Bank.
Standard & Poor’s has assigned preliminary B+/B long-term and short-term counterparty credit ratings to the Good Bank, with a negative outlook. Also, a preliminary BB-/B South Africa national scale rating was assigned to the Good Bank.
African Bank is a Johannesburg-based lender.
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