Shareholders are referred to the announcement released on 24 April 2020 wherein shareholders were advised that the Board of the Company were considering various options in relation to one of its subsidiaries, namely Force Fuel, following the negative impact on the volumes of wholesale fuel due to the lockdown pursuant to the COVID-19 pandemic. After investigation, the directors of Force Fuel have resolved to put Force Fuel into business rescue and appoint Johannes (John) Christiaan Henning as the Senior Business Rescue Practitioner. The relevant documents have been filed with CIPC and the date the company went into business rescue was 5 May 2020 We await the confirmation of the appointment of the Practitioner from CIPC.
Shareholders are reminded that the long-term debt that was acquired as part of the Force Fuel acquisition is ringfenced in Force Fuel and Labat has not signed any security or cross guarantees in relation to this bank funding. The intention is to safeguard the business of Force Fuel and return it to profitability in due course.