African Bank restructuring officially approved

A pedestrian passes an African Bank branch, a unit of African Bank Investments Ltd. (Abil), in Johannesburg, South Africa, on Wednesday, Aug. 13, 2014. African Bank Investments Ltd., the failed South African lender being rescued by the central bank, needs to attract depositors to finance lending as risks increase that equity and bond investors will shun it after losses. Photographer: Dean Hutton/Bloomberg via Getty Images

CAPE TOWN – African Bank announced on Tuesday that its proposed restructuring had been approved by the Minister of Finance as well as the Registrar of Banks.

Earlier this month, the mass market micro-lender that was put under curatorship in August last year said it had received “overwhelming support” from creditors for its proposed restructuring.

More than 95 percent of holders of debt, both senior and subordinated, have taken up the bank’s offer to exchange existing debt instruments for notes in the “Good Bank” to be created from the assets of the failed bank.

The final remaining hurdle is the granting of approvals and the listing of the Good Bank notes by the relevant listing authorities, the Johannesburg Stock Exchange, the London Stock Exchange and Swiss Stock Exchange.

The target date for the commencement of the Good Bank operations and settlement of the exchange offers remains April 4.

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