MGX SECURES FUNDING AS RECOVERY PROCESS PROGRESSES
MGX SECURES FUNDING AS RECOVERY PROCESS PROGRESSES
MGX Holdings Limited
ISIN : ZAE000009262
Share Code: MGX
Johannesburg, 18 December 2002 - MGX announced today that its existing banks and
other lenders had agreed to provide the facilities required to underpin the
group`s current strategic review and restructuring process.
MGX executive chairman and interim CEO Peter Flack said securing the additional
facilities from the group`s lenders was a crucial first step in devising a new
strategy and structure.
"We still have a long way to go but we`re making good progress. We`ve now had
presentations on each of MGX`s major operations and I`m greatly encouraged by
what I`ve seen so far," Flack said.
"Each of these businesses has a well-conceived strategy, a definitive action
plan and a keen, competent management team. It is clear that MGX`s problems
have their origins not in its operations but at its centre, where strategic
incoherence has resulted, among other things, in ill-considered acquisitions and
corporate governance lapses."
Upon his appointment three weeks ago Flack said it would take three months for a
thorough business review and the development of a new direction for MGX. He
has undertaken to provide a detailed progress report and trading update by the
end of January.
Issued by du Plessis Associates on behalf of MGX Holdings Limited.
dPA contact Kathy du Plessis on Tel: 011-728 4701, mobile: 083 266 5847 or e-
mail gen@dpapr.com
Date: 18/12/2002 12:45:34 PM Produced by the JSE SENS Department
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