Reserve Bank awards African Bank Good Bank with licence
In addition to the Reserve Bank awarding African Bank "Good Bank" its banking licence, creditors have voted in favour of an offer to transfer their debt instruments from the failed African Bank to the newly constructed Good Bank.
According to Tom Winterboer (pictured), African Bank curator, 95.4% of senior creditors by value had accepted an exchange offer to transfer their debt instruments into the "good bank". In addition, some 99.99% of subordinated debt holders accepted the exchange offer. He says creditors voted in favour of the offer because it was a great deal.
"There was just about R40bn outstanding to senior creditors before the time of curatorship... These instruments were trading at about 50c in a rand before curatorship. I think they have done well. Now at least they are getting 90c."
Outstanding conditions that still need to be met are approvals from the finance minister and the registrar of banks, though Winterboer says they do not expect difficulty in this regard.
He added that Brian Riley, African Bank Good Bank CEO, would be announcing the company's strategy and new products in the coming weeks, ahead of the bank's scheduled launch on 4 April 2016.