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 8 April 2022 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 five update reports are available on
www.matusonsassociates.co.za/basilread/. 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 the
  contraction in the local and global economies.

2. BRL has completed all the construction contracts that were
  earmarked for completion with the Employers having issued
  the Performance Certificates in this regard. BRL is now
  targeting the commercial close out, which includes final
  account determination and return of Construction Guarantees
  for two contracts in namely:

  2.1. TCTA (Olifants River Water Resources Development
        Project – Phase 2);

  2.2. Eskom Medupi Building Project.
3. The aggregate contingent liability in the form of
  construction guarantees have been reduced to R72.6 million
  versus R1.1 billion at the beginning of the rescue
  proceedings.

4. 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.

 5. The BRPs have reported no further developments in the
   realisation of the non-core assets given the prevailing
   depressed economic conditions domestically and globally.

6. 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.

7. From a Basil Read Holdings Limited perspective, the
  implementation of the Business Rescue Plan of BRL
  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.
8. 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 30 June 2022.



Bedfordview

14 September 2022

Company secretary
Emmaus Holdings (Pty) Limited


JSE Sponsor
Grindrod Bank Limited

Date: 14-09-2022 11:00:00
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