Cash crisis forces the land bank to issue a R738m default warning
CAPE TOWN – The government-owned Land and Agricultural Development Bank yesterday warned its creditors that it might default on some R738 million of indebtedness scheduled to mature by the end of the month as a result of a cash crisis it was experiencing.
The bank said it was engaging with stakeholders to address the problems, especially in regard to financial obligations falling due that may need to be deferred. On Monday the bank said it had been unable to repay a revolving credit facility, and it warned of potential defaults on payments on its R50 billion bond programmes.
Yesterday, the lender said its legal counsel had, however, reconsidered their analysis and concluded that the amount repayable under the revolving credit facility had not constituted a default under the notes programmes, but a default might occur for debts that had begun to fall due yesterday. It said it had approached certain lenders and funders to raise up to R5bn to meet its medium-term liquidity requirements.
Source: iol.co.za