RDS curator Tom Winterboer. Picture: WALDO SWIEGERS
RDS curator Tom Winterboer. Picture: WALDO SWIEGERS

Residual Debt Services (RDS) — the "bad bank" portion of African Bank — reported a R450m operating loss for the six months to end-September on Thursday.

When African Bank went into curatorship in Aug 2014, it was split into a "good bank" which retained its brand name, and a "bad bank" renamed RDS.

The banks were separated from their JSE-listed holding company, African Bank Investments Limited (Abil), which resumed trading on February 1 under the new name Africa Phoenix.

African Phoenix remains a shareholder of RDS. The bank is not in a position to pay dividends to its shareholders or interest to sub-ordinated debt holders, the statement said.

RDS curator Tom Winterboer said a R3.3bn loan from the South African Reserve Bank had been repaid with interest by September 1, 2016.

Another senior creditor is South African Revenue Services. "Due to the uncertainty relating to this matter, no deferred tax asset or liability has been raised in the financial statements," RDS said.

Loan advances were reduced to R5bn from R7bn.

"Overall, collections are running smoothly and slightly above forecast, albeit with reduced expectations for future collections, as the book pays down," Winterboer said.

As a result of winding down RDS’s loan book, cash inflow from operating activities reduced to R1.3bn from R2bn.

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