Arcay Group Limited
(Incorporated in the Republic of South Africa)
(Registration number 1991/003944/06)
Share code: ARC
ISIN code:ZAE 000022406
Debenture code: ARCD
ISIN code:ZAE 000022398
("Arcay Group" or "the Company")
Announcement to Arcay Group Debentureholders
Further to the announcement published in the press on 15 April 2002, Arcay
Group debentureholders are advised that the negotiations between the trustee
and the Company have reached a deadlock. With no settlement having been
reached, the trustee has now, as directed by debentureholders, made formal
demand for the repayment by Arcay Group of the full amount of the capital of
the debentures, together with accrued interest, in terms of the provisions
of the Debenture Trust Deed ("the Trust Deed"), due to what the
debentureholders perceive to be breaches by the Company of certain of the
terms of the Trust Deed.
Arcay Group continues to dispute that it has breached any of the terms of
the Trust Deed and informs debentureholders that it has formally advised the
trustee of this. Arcay Group also advised the trustee that, should the
trustee wish to enforce repayment of the debentures, the matter should be
referred to arbitration in terms of the Trust Deed, which claim will be
disputed by Arcay Group. The trustee intends to demand arbitration
forthwith.
This announcement has been published for information purposes, in the
interests of debentureholders. Arcay Group will publish further
announcements in order to keep debentureholders informed of the progress in
the matter.
Purchase of debentures on the open market
Arcay Group also wishes to advise debentureholders that it intends to
repurchase Arcay Group debentures through its subsidiary, Arcay Finance
Limited, on the open market on the JSE Securities Exchange SA ("JSE").
An announcement will be made once the company has cumulatively repurchased
3% of the debentures, and for each 3% in aggregate of the debentures
acquired thereafter, as may be required by the JSE.
Arcay Client Support (Pty) Ltd
(Reg No 1998/025284/07)
Company Secretary
Parktown
15 May 2002
Sponsor: Legal Advisor:
KPMG Services (Pty) Ltd Cliffe Dekker Fuller Moore
Date: 15/05/2002 05:02:00 PM Produced by the SENS Department
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