| Tue 15 Feb 2011, 15:05 | | WEA - WG Wearne Limited - Update announcement relating to the Section 311 |
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WEA
WEA
WEA - WG Wearne Limited - Update announcement relating to the Section 311
scheme of arrangement proposed to the creditors of the company
WG WEARNE LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1994/005983/06)
JSE code: WEA
ISIN: ZAE000078002
("Wearne" or "the company" or "the group")
UPDATE ANNOUNCEMENT RELATING TO THE SECTION 311 SCHEME OF ARRANGEMENT
PROPOSED TO THE CREDITORS OF THE COMPANY
Shareholders are referred to the announcement, dated 30 November 2010, and
are advised that Wearne has applied to the High Court of the Republic of
South Africa ("Court") to convene a meeting of its secured and concurrent
creditors in terms of the provisions of Section 311 of the Companies Act 1973
(Act 61 of 1973) as amended, for the purposes of considering and, if deemed
appropriate, accepting a scheme of arrangement between itself and those
classes of creditors ("the scheme").
The group requires a moratorium on the repayment of all existing debt in
respect of:
- its concurrent creditors for a period of approximately 8 months from 1
January 2011 to 31 August 2011; and
- in respect of its secured creditors for a period of approximately 24
months from 1 February 2011 to 31 January 2013.
In terms of the moratorium, repayment of all concurrent creditors in respect
of all amounts owing to them by the company prior to 1 January 2011, will be
in 20 equal monthly instalments, amounting to 5% of the face value of the
Arrangement Claims plus interest at 3% per annum, commencing on 5 September
2011.
A scheme meeting of the abovementioned creditors has been summoned by the
Court for 1 March 2011 ("meeting"). Subject to the scheme being approved by
the creditors at the meeting, application will be made to the Court for the
sanctioning of the scheme at an open hearing.
The following timetable applies to the scheme:
Application to convene the scheme meeting granted by Court on 8 February
2011
Notice of scheme meeting published in the press on 13 February 2011
Circular relating to the scheme posted to creditors on 15 February 2011
Last day to lodge form of proxy for the scheme meeting by 09h30 on 1 March
2011
Forms of proxy may be handed to the chairperson of the scheme meeting up to
10 minutes before the commencement of the scheme meeting to be held on 1
March 2011
Scheme meeting held at 14h00 on 1 March 2011 on at Nedbank Limited, 135
Rivonia Road, Sandton
Chairperson`s report on scheme meeting available for inspection from 3 March
2011
Court hearing at 10h00 or as soon thereafter as Counsel may be heard to
sanction the scheme on 15 March 2011
Results of Court hearing published in the press on 20 March 2011
Order of Court sanctioning the scheme registered by the Registrar on or
about 17 March 2011
Operative date of the scheme, from the commencement of business on 22 March
2011
Randburg
15 February 2011
Designated Adviser
Vunani Corporate Finance
Date: 15/02/2011 15:05:02 Produced by the JSE SENS Department.
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