MARKET WATCH
MARC HASENFUSS: So-slow rescues
Investors in RBA and Alert Steel face a long wait and could, in the end, be waiting for nothing
In recent times two business-rescue exercises involving JSE-listed companies have come to nothing. Last month low-cost property developer RBA Holdings went into liquidation and building supplies specialist Alert Steel — after a prolonged rescue effort — also opted for liquidation. I suspect in both instances shareholders are not going to see a flow of meaningful proceeds (if any) from the liquidation process. I sincerely hope I am wrong. The liquidation process that is currently well under way at Chemspec — another that did not pass successfully through business rescue — should be instructive. If anything can be gauged by shareholders, it’s that the process takes an inordinate amount of time. The one exception so far is Brikor, which fought its way out of provisional liquidation. The company is now profitable, with a less-stressed balance sheet, and has been pushing to restore its long-suspended listing on the JSE’s AltX. Recently released results for the six months to end-August we...
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