South Africa’s Real People seeks extension of standstill agreement

By Caroline Salls

Pittsburgh, Aug. 10 – Real People Investment Holdings Ltd. is asking the holders of its outstanding SEK 260 million and NOK 135 million of senior unsecured callable bonds to extend a standstill agreement between the parties to Nov. 30 from Aug. 31, according to a notice released Thursday by bond trustee Nordic Trustee & Agency AB.

The trustee said the standstill is designed to facilitate a restructuring of Real People’s capital structure.

No interest or capital repayments will be made to the standstill creditors while the standstill period is ongoing.

In addition, the standstill creditors have agreed not to take any enforcement action against Real People and its group during the standstill period.

Nordic said the company will not be able to complete the restructuring before the current Aug. 31 standstill agreement maturity date.

Bondholders must submit votes on the extension to the trustee by Aug. 22.

As previously reported, Real People Group is experiencing financial difficulties, and its capital adequacy ratio is expected to be below the prescribed level.

As a result, the company believes that it is in the best interest of its creditors to carry out a consensual restructuring.

Based in East London, South Africa, Real People provides financial services focusing on unsecured credit, affordable housing, assurance, educational products and cellular products for customers in South Africa, Uganda, Tanzania and Kenya.

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