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...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.

Questions or problems? Email or call 0860 52 52 00.