African Bank Investments Ltd. (ABL), suspended from Johannesburg’s stock exchange following its collapse this month, said unprofitable furniture retailer Ellerine has started voluntary rescue proceedings.
Ellerine’s board of directors advised Abil, as the bank is known, that it began the process in the absence of further funding from the bank, the lender said today in a statement.
The South African Reserve Bank stepped in to save Abil on Aug. 10 after the lender said it will post a record loss and needs at least 8.5 billion rand ($795 million) of capital.
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