The Curator of African Bank, Tom Winterboer, is pleased to announce that, following the completion of the exchange offer process, the Good Bank, renamed African Bank Limited, was launched on 4 April 2016. This is a significant achievement in the delivery of the African Bank restructuring.
“The commencement of the new African Bank represents the culmination of the restructuring announced by the SARB in August 2014. We are delighted at the overwhelming support received from the creditors for the restructuring of the bank and now hand the batten over to the new board of directors and management team of the new African Bank, wishing them every success,” commented Curator Tom Winterboer.
Following developing problems within the African Bank Investments Limited group of companies, PwC worked to develop a restructuring proposal that was accepted by the SARB and leading banks of South Africa, resulting in Tom Winterboer, Financial Services Leader for PwC Africa, being appointed as the curator of African Bank on 10 August 2014.
While under curatorship, a considerable amount of time was spent developing this restructuring proposal, including steps to amend the Banks Act to provide necessary flexibility and engagement with affected creditor groups, including through the publication of the detailed restructuring plan for comment in September 2015 following the successful changes to the Banks Act. Engagement with creditor groups culminated in over 95% of affected creditors electing to accept the proposed restructuring terms.
The curator has been advised by law firms Webber Wentzel and Linklaters, together with a multi-disciplinary team from PwC South Africa and PwC UK, blending local expertise with global financial services restructuring experience to optimise the curatorship outcome.
Winterboer says: “The curatorship and restructuring of African Bank has been an extremely complex and arduous process with a number of challenging legal, regulatory and financial processes and matters. Through the hard work of PwC’s multifaceted advisory team, the legal advice and support of Webber Wentzel and Linklaters, as well as the management team at African Bank and the considerable support of the South African Reserve Bank and National Treasury, we have now reached the significant moment of launching the new African Bank.”
The curator was supported by David Gard and Peter Spratt of PwC UK, and Craig du Plessis and Anton Esterhuizen of PwC South Africa, as well as members of the PwC advisory, actuarial, tax and financial services team. The Webber Wentzel team was led by Johannes Gouws and Peter Bradshaw, and the Linklaters team was led by Richard Bussell and Richard Levy.