BASIL READ HOLDINGS LIMITED - Update to the Basil Read Limited Business Rescue Plan

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 last announcement released
on SENS on 15 November 2021 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,
twenty three 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.

These latest reports indicate the following:
1.The Group continued operating steadily despite Covid-19
  challenges and has implemented health protocols to limit
  the of virus.

2.There are three remaining construction contracts in the
  defects liability period and the anticipated end dates are
  as follows:

  2.1. Umgeni Water (Rosetta Water Treatment Works) – March
       2022;

  2.2. TCTA (Olifants River Water Resources Development
       Project – Phase 2) – the last defect rehabilitation
       was completed in December 2021. Commercial closure,
       which involves the determination of the final
       account, inclusive of contract claims, is expected in
       Q2 2022;

  2.3. Eskom (Various Medupi Projects) – Three (3) out of
       the 4 projects have received the Performance
       certificates and it is anticipated that the final
       account will be determined by April 2022. The
       remaining project, the Buildings Project, is
       anticipated to receive a performance certificate
       which also in April 2022, with the determination of
       the final account before the end of Q2 2022

3.BRL, through a joint venture partnership, concluded a
  contract in the civils construction area.

4.The aggregate contingent liability in the form of
  construction guarantees have been reduced to R72.8 million
  versus R1.1 billion at the beginning of the rescue
  proceedings.

5.BRL continues to pursue contract claims as it relies
  heavily on claims proceeds to meet its commitments.
  Although there has been considerable progress in obtaining
  favourable rulings with respect to certain of these claims,
  some Employers continue withholding payments necessitating
  additional legal action to enforce the rulings. Thus, the
  timing of receipts of funds for these claims remains
  uncertain.

6. 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.

7.The business rescue practitioners remain of the view that
  a full implementation of the Business Rescue 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 six months ending 31 December 2021.



Bedfordview

7 April 2022

Company secretary
Emmaus Holdings (Pty) Limited


JSE Sponsor
Grindrod Bank Limited

Date: 07-04-2022 09:30:00
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