RDS still owes R8.45bn to creditors
Four years after the collapse of African Bank Limited, only R1.15bn of a total R9.6bn has been paid out
Four years after the collapse of African Bank Limited (Abil), only R1.15bn out of a total R9.6bn has been paid to creditors. According to the latest financial statements for Residual Debt Services (RDS), the so-called “bad bank” that emerged from the split of Abil, R7.8bn will still be outstanding by January 2019 with a chance that some creditors may never be paid. “I would caution against using past payments as an expectation. There is a likelihood of a payment or payments being made but I will not classify it as material distribution, said Craig du Plessis, curator of RDS. The old African Bank collapsed and was placed under curatorship in 2014 and was renamed Residual Debt Services when it was placed under curatorship. Du Plessis said RDS will pay R650m more to its senior debt holders by the end of January 2019. This will increase the amount paid to creditors since curatorship began to R1.8bn. However, only senior stub holders have been paid to date. These are creditors, usually b...
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