Poll

I will Buy African Bank Shares @

Below R8
0 (0%)
Below R7
2 (8.3%)
Below R6
13 (54.2%)
Are you Mad !!
4 (16.7%)
Never
5 (20.8%)

Total Members Voted: 23

Author Topic: African Bank  (Read 44753 times)

Nivek

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Re: African Bank
« Reply #75 on: August 19, 2014, 09:47:27 am »
'F*** the poor!' is the message from a top executive at African Bank

Quote
In a terrifying glimpse this week into the dark heart of unsecured lending in South Africa, a former top executive of African Bank, Tami Sokutu, scorned the poor who were sucked into debt by easy loans from his now failed company.

Money can't buy you class...

jaDEB

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Re: African Bank
« Reply #76 on: September 02, 2014, 05:38:27 pm »
Yip, that is what you do, use the last bit of investors money that is left. employee  :wall: some people  :wall:, let them run around doing cr  :wall: p. Then at the end say, althought millions was spend looking at what went wrong, nothing is left... Same old Bullsh :wall: t every frikkin  :wall: time.   :wtf:  :frustrated:  :frustrated:  :frustrated:  :frustrated:  :frustrated:  :frustrated:  :wtf:




SOUTH AFRICAN RESERVE BANK ("the SARB") INVESTIGATION INTO AFRICAN BANK

On 10 August 2014, the SARB released a statement, placing African Bank into Curatorship. The SARB has today
released a further statement relating to the institution of a formal independent investigation into African Bank, in terms of
section 69(A) of the Banks Act No 94 of 1990.

The full SARB statement is set out below:

"The South African Reserve Bank (SARB) recognises the importance of investigating the circumstances that gave rise to
African Bank being placed under Curatorship on 10th August, 2014. It has therefore decided to institute a formal
independent investigation in terms of section 69 (A) of the Banks Act No. 94 of 1990. The Registrar of Banks has,
pursuant to this decision, appointed Adv. JF Myburgh as Commissioner in terms of the said provisions with effect from
30th August 2014. He will be assisted by Vincent Maleka, SC, and Brian Abrahams. Notice to this effect will appear in the
Government Gazette of 12 September 2014.

Advocate Myburgh will, among other matters, investigate the business, trade, dealings, affairs, assets and liabilities of
African Bank. These duties will be performed as outlined in section 69(A) of the Banks Act and in terms of sections 4 and
5 of the Inspection of Financial Institutions Act 1998 (Act NO. 80 of 1998)

The Commissioner is required to complete this investigation within a period of five months from the date of appointment.
A written report will be required to be submitted within 30 days after the completion of the investigation.
The report should indicate, among other things, whether or not:
   1. it appears that any business of African Bank was conducted recklessly, negligently or with the intent to defraud
      depositors, other creditors or any other person for any other fraudulent purpose;
   2. the business of African Bank involved questionable management practices or material non-disclosures, with the
      intent to defraud depositors or other creditors. Should this appear to be the case, the Commissioner should
      indicate whether any person party to such questionable practices has been identified."


The ABIL Board of Directors has committed to fully cooperating with the Commissioner on the matter.

All queries with regard to the Commission should be addressed to Hlengani Mathebula, Head of Group Strategy and
Communications at the SARB on +27 12 313 4210 or +27 82 448 9219.

On behalf of the Board

Midrand
2 September 2014
« Last Edit: September 02, 2014, 06:16:27 pm by jaDEB »
jaDEB

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Patrick

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Re: African Bank
« Reply #77 on: September 05, 2014, 10:01:01 am »

Alsie

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Alsie

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Re: African Bank
« Reply #79 on: September 08, 2014, 07:24:43 am »
Verster explained that the South African Bonds were not trading. “They are part of the suspension, similar to the Common Equity. Some money market funds and income funds have adjusted their evaluation or frozen that part of their portfolio, so some investors, when they request a redemption from an income fund of R100, might get R93 and R7 will be held behind, because that is the African Bank exposure. No one really knows the true value, but I would guess it would be close to 90% of the previous value.”  In the whole reorganisation, there’s a good bank and a bad bank, said Verster. “The bad bank gets bought out of Abil at R7bn for R17bn loan book. That leads to an impairment of R10bn in the listed entity, so the listed entity is insolvent.

“There is also a buy-out of the good book of R26bn from the listed entity into a good bank, so there’s an asset of 26. However, the debt holders also go long, which is 90% of R40bn of debt. That is R36bn, so you have 26 of loan book and 36 of the liability. That leaves a 10% funding shortfall. That’s where the consortium of banks are coming in.”

“The banks will want to exit because they are not in the business of owning stakes in other banks,” he said. “The good bank will then list and allow that consortium to be replaced as the shareholder, by public shareholders, so there’s quite a process still to come.  In that whole process there is some value attached to the current Abil shares …”


Alsie

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Re: African Bank
« Reply #80 on: September 12, 2014, 07:18:43 am »

jaDEB

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Re: African Bank
« Reply #81 on: January 27, 2015, 11:54:22 am »
Wow, lots of new information here, thanks ABL, do people actually get paid to to this cr@p with the little money that is left.

AFRICAN BANK LIMITED
(Incorporated in the Republic of South Africa)
(Registered bank)
(Registration number 1975/002526/06)
Company code : BIABL
In Curatorship
(“African Bank” and the “Bank”)

Further cautionary announcement and continued suspension of all debt securities of
the Bank and equity securities of ABIL

1. Investors are advised that the curatorship of the Bank and the restructuring initiatives in respect
   of ABIL, as announced in a statement by the then Governor of the South African Reserve Bank
   (“SARB”), Ms Gill Marcus, on 10 August 2014 (“the SARB statement”) remain ongoing.

2. During this time, trading in both the debt securities of the Bank and the equity securities of ABIL
   will continue to remain suspended. Investors are therefore advised to continue to exercise caution
   when dealing in the debt securities of the Bank and the equity securities of ABIL until further
   detailed announcements are made.

3. Investors are referred to the ABIL and African Bank announcements released on the Stock
   Exchange News Service (“SENS”) on 10 December 2014, respectively entitled "Renewal of
   cautionary announcement and continued suspension of all securities of ABIL, an update on the
   business rescue process in Ellerines and update on the release of ABIL’s annual results for
   financial year ended 30 September 2014” and "Renewal of cautionary announcement, further
   update on the curatorship of African Bank and proposed restructuring measures”.
jaDEB

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Alsie

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Re: African Bank
« Reply #82 on: February 18, 2015, 12:08:00 pm »
Interesting new article @ http://afkinsider.com/88535/african-bank-story-laws-lending-south-africa/.
Especially this:
This deal essentially involves giving secured creditors (those with collateral) 90 percent of the value of their loans and giving all other lenders and equity-holders nothing at all. In the meantime, the story of African Bank’s bad balance sheet continues, and it doesn’t look like the unsecured lenders will find much sympathy for their concerns. For now it’s Hobson’s choice, it’s either [the deal] or nothing, and if they don’t take the deal they’ll go into liquidation, which would cause a lot more pain, more unemployment… You don’t want that knocking on the door of the South African economy as a whole.