JOHANNESBURG (Reuters) – Investec’s 100 million rand ($9 million) exposure to the former furniture unit of failed South African lender African Bank Investments is guaranteed, a spokeswoman said on Wednesday.
Investec is owed at least 100 million rand by Ellerine Holdings, according to Ellerine’s business rescue plan. That money is “guaranteed” by African Bank, Investec spokeswoman Ursula Nobrega said.
Shortly before it collapsed in August, African Bank hived off the Ellerine unit, which is now undergoing restructuring. It owes creditors nearly 1.3 billion rand, according to its business rescue plan.
