WEA
WEA
WEA - WG Wearne Limited - Announcement
WG WEARNE LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1994/005983/06)
JSE code: WEA
ISIN: ZAE000078002
("Wearne" or "the group" or `the company`)
ANNOUNCEMENT
As referred to in the commentary to the results for the period ended 31 August
2010, the group is still under considerable strain to fund its working capital
requirements, mainly due to the slowdown in construction in general and
residential construction in particular.
The directors continue to examine all areas of the business in an effort to
streamline processes, reduce costs and improve turnover. Wearne has appointed
turnaround specialists to assist management in this regard and this process has
already borne some fruit.
Wearne`s bankers and financiers have continued to support the group, having re-
scheduled instalments on asset based debt finance and by granting a further
payment moratorium for December 2010 and January 2011.
The directors are of the view that Wearne can overcome its financial
difficulties, provided it can obtain a further moratorium in respect of the
servicing of its debts to its funders and its creditors for a certain period.
Wearne is therefore considering an application in terms of Section 311 of the
Companies Act, 1973 to convene a scheme meeting of its creditors in order to
obtain a formal and enforceable arrangement binding on all its creditors against
all the company`s creditors. Wearne will, at this scheme meeting, formally
propose a plan as to the basis for the moratorium sought and how it intends to
trade out of its financial difficulties.
Randburg
30 November 2010
Designated adviser
Vunani Corporate Finance
Date: 30/11/2010 16:30:42 Produced by the JSE SENS Department.
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