African Bank restructuring

Overview:

• African Bank has undergone a successful restructuring, the first time that such a deal has happened in South Africa.
• The bank was placed under the curatorship of Thomas Winterboer of PricewaterhouseCoopers (PwC). 
• A good bank-bad bank structure has been used, which required an amendment to the county's Banks Act. 
• The restructuring transaction was announced in August 2014, and is close to being finalised as of March 2016.
• The good bank will acquire the viable elements of the business, largely ZAR26 billion of personal lending, which will begin trading on April 4th, 2016. 
• A ZAR10 billion recapitalisation of African Bank was required as part of the restructuring, which has been accepted by its creditors.

John Crabb - Journalist

Further information

African Bank restructure sets workout precedent

IFLR managing editor Tom Young looks at the deal in more detail, include key takeaways