African Bank unit applies for 'rescue'

Johannesburg - The furniture retailing arm of troubled South African lender African Bank Investments has applied for temporary protection from creditors, it said on Thursday.

Ellerine Furnishers said in a regulatory filing it had applied for “voluntary business rescue” under South Africa's Companies Act.

Photo: Simphiwe Mbokazi. Credit: Independent Newspapers

African Bank, which shocked the market on Wednesday when it said it needed 8.5 billion rand in new capital to shore up its balance sheet, acquired Ellerine Holdings in 2008.

Ellerine Holdings is the parent company of Ellerine Furnishers.

Under South African law, business rescue provides temporary protection of a company's property from creditors. - Reuters