Rebosis goes into business rescue
Rebosis Property Fund has gone into business rescue and will implement a turnaround plan in a bid to stay afloat.
A Business Day report says in a Sens announcement on Friday, Rebosis cited rising interest rates as one of the main reasons for applying for the protection.
Others include the inability to recover increased municipal costs from sovereign tenants, the continuous delay of rental payments by some government departments that account for more than half of group revenue, the government’s downward pressure on significant reversions upon renewal of leases, and the expected time frames within which shareholder approval could reasonably be obtained on disposals.
The company is appointing a business rescue practitioner.
Rebosis successfully applied for the immediate suspension in trading of its shares on the JSE until its cash flow improves.
‘We believe the protection offered in business rescue will allow Rebosis to expedite the implementation of a turnaround strategy to reduce its debt burden of about R9.5bn at 28 February to sustainable levels,’ the company said.
Article disclaimer: While we have made every effort to ensure the accuracy of this article, it is not intended to provide final legal advice as facts and situations will differ from case to case, and therefore specific legal advice should be sought with a lawyer.
