The "bad bank" that remains after African Bank collapsed is set to pay R500m to its senior creditors, thanks to a drastic increase in its cash reserves. These rose sixfold to R3.675bn for the year ended-September, due largely to "good collections" on the existing debtors’ book. The senior creditors include Stanlib, Momentum, Taquanta and Investec Asset Management, which were exposed to African Bank Investments when it collapsed and was placed under curatorship. Their collective claim against the former African Bank, now known as Residual Debt Services, is worth about R5.38bn. Curator Tom Winterboer said the R500m in interest being paid to these creditors would be done in proportion to the percentage of the debt that they held. "I would say that people are very pleased, they didn’t expect to get money already at this stage," he said on Wednesday. "Ultimately, it goes to holders of unit trusts. Stanlib, through their unit trust, for instance, would hold an investment in the senior stu...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.