Boe Limited - Court Rules In Favour Of Boe In Intr
BoE Limited - Court rules in favour of BoE in Intramed case
BoE Limited
Share code: BOE
ISIN code: ZAE000014890
In its 2001 annual financial statements, BoE disclosed a contingent
liability in respect of an exposure to the Macmed Health Care Group through
a former subsidiary, Intramed (Pty) Ltd. The exposure of R127 million at 30
September 2001, (R115 million plus interest) was secured by certain assets.
Macmed and Intramed were liquidated, and BoE Bank received an advance
dividend from the sale of the assets in an amount to extinguish the Bank`s
claim in full. The liquidator, however, disputed BoE Bank`s security, and
required BoE Bank to issue a guarantee in respect of the advanced dividend.
BoE Bank then took the matter to court for a ruling on the validity of its
security. No provision was raised against the exposure, as opinion from
senior counsel was that BoE Bank`s claim was secure.
In a judgement by the High Court of South Africa, South-Eastern Cape Local
Division, issued on 3 June 2002, the judge ruled in favour of BoE Bank, and
the liquidators of Intramed were ordered to pay BoE Bank the full amount due
plus interest and costs.
Ends
Issued by: BoE Ltd
Contact: Don Bowden
27 21 416 6173
082 555 8721
Date: 07/06/2002 03:29:00 PM Produced by the SENS Department
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