Share

Legal boost for African Bank restructuring

Johannesburg - The curator of African Bank, Tom Winterboer of PwC, announced on Tuesday that he can now initiate the legislative process of restructuring African Bank and creating a "Good Bank".

This is because the Banks Act Amendment Bill 2014 was signed into law with effect from June 29 2015.  

Then governor of the South African Reserve Bank (Sarb) Gill Marcus placed African Bank under curatorship on August 10 2014.

At the same time, Sarb set out a proposal for the restructuring of the bank, which entailed the creation of a new "Good Bank" consisting of African Bank's healthy assets.

READ: Rescue plan for African Bank

The curator announced last week that African Bank has managed to narrow its loss to R2.8bn in the six months to end-March from a restated R5.9bn in the previous comparable period.

READ: African Bank narrows loss to R2.8bn

At the time Winterboer said the restoration to profitability and subsequent achievement of acceptable investor returns in the "Good Bank" will take time, effort and commitment.

Winterboer said on Tuesday that he is currently unable to give a date on which the suspension of African Bank securities is expected to be lifted.

A Treasury official said in March that the "Good Bank" could be listed in early 2016. In the meantime, Brian Riley has been appointed as CEO designate of the "Good Bank" and its new holding company.

ALSO READ: African Bank appoints Good Bank CEO designate

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Voting Booth
Do you think corruption-accused National Assembly Speaker Nosiviwe Mapisa-Nqakula will survive a motion of no confidence against her?
Please select an option Oops! Something went wrong, please try again later.
Results
No, her days are numbered
41% - 491 votes
Yes, the ANC caucus will protect her
59% - 698 votes
Vote
Rand - Dollar
18.92
+0.1%
Rand - Pound
23.88
+0.1%
Rand - Euro
20.38
+0.2%
Rand - Aus dollar
12.32
+0.2%
Rand - Yen
0.13
+0.1%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE