CONSOLIDATED INFRASTRUCTURE GROUP LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2007/004935/06)
JSE share code: CIL ISIN: ZAE000153888
(“CIG” or the “Company” or the “Group”)
VOLUNTARY BUSINESS RESCUE APPLICATION IN RESPECT OF CONSOLIDATED POWER PROJECTS PROPRIETARY LIMITED
Since March of 2019, shareholders have been advised of the ongoing efforts of the Company and its funders to conclude various agreements to restructure the short-term debt profiles of both the Company and its subsidiary, Consolidated Power Projects Proprietary Limited (“Conco”), into a longer-term, more sustainable, debt structure. In August of 2020, the Group appointed advisors to assist in finalising the debt restructure process timeously.
Despite the Company’s continued focus on Conco’s financial recovery, negotiations with funders for a voluntary restructure have been unsuccessful.
As a result, shareholders are advised that on Monday, 2 November 2020, the board of directors of Conco resolved that it will be in the best interests of Conco, to commence with voluntary business rescue proceedings in terms of section 129 of the Companies Act, 71 of 2008. The board resolution of Conco to this effect was filed with the Companies and Intellectual Property Commission (“CIPC”) today, Monday, 2 November 2020 and Conco is currently awaiting confirmation from CIPC of the filing to proceed with the voluntary business rescue.
The Conco board of directors is currently finalising the appointment of a business rescue practitioner and will lodge the necessary documents for their appointment with CIPC in the next few days.
Shareholders will be updated as further material information becomes available.
In addition, an update on the debt restructure negotiations with CIG lenders, which includes the Conco funders where CIG had provided parent company guarantees for the debt incurred by Conco, will be provided as soon as possible.
Shareholders are referred to the cautionary announcement published on Monday, 26 October 2020 and are reminded to continue to exercise caution when trading in CIG shares until a further announcement in this regard is made.
3 November 2020