RECAPITALISATION
Blue Financial Services seeks damages from two banks
Beleaguered microlender Blue Financial Services is pursuing R163m in damages from Standard Chartered and BancABC, which it blames for its failed recapitalisation in 2010. "Blue shareholders placed reliance on [the banks] to perform certain obligations in terms of the recapitalisation of Blue and then for no plausible reason, [the banks] repudiated [the agreement]," said Blue CEO Johan Meiring. Mapula Solutions, which owns the Mayibuye Group, Blue’s controlling shareholder, has obtained a court order for the R163m. Standard Chartered declined to comment on Thursday, spokeswoman Geraldine Matchaba saying only that it was a legal matter and that it was inappropriate to comment. Bank-holding company Atlas Mara did not respond to requests for comment. The two banks were party to an agreement to fund the group, which incurred a record loss of R1bn in 2010, rendering it insolvent. In terms of the deal, Mayibuye would initially buy shares worth R163m in the company, while creditors includin...
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