Saturday, May 23, 2015
South Africa's Ellerine Creditors Receive 14 Percent Payout
Wed., May 20, 2015
Administrators of the furniture arm of failed lender African Bank Investments said on Tuesday creditors were paid 14 percent of what they were owed by Ellerine Furnishers, which had debts of around 1.3 billion rand ($109 million), Reuters reported. Administrators Matuson Associates said they paid out 14 cents for each rand owed, higher than the previously anticipated 13 cents per rand. Ellerine was forced into business rescue last year, which allows for temporary protection from creditors, as parent African Bank Investments crumbled under bad debts. The administrators also said they were in talks with several potential buyers for stores outside South Africa and may not receive as much as they had previously anticipated. Matuson Associates said last year they had received an indicative offer of 400 million rand for Ellerine's stores in other African countries from a listed South African retailer but Matuson said he was no longer sure he would receive that amount.