Listed property company Bonatla has reported reduced losses for the six months to March this year, with management saying the company is back in business after being suspended for about 18 months by the JSE.

CEO Robin Rainier said Bonatla was "totally confident" that it would be operating again soon on the JSE's main board.

He said the company had posted strong results, and was back on a "sound footing".

Bonatla, which was suspended because it had not posted financial results since 2002, reported a net loss after taxation of R11,072m for the six months to March.

This was a significant reduction on the R14,2m loss reported in the previous corresponding period.

Rainier, who took control of Bonatla a year ago when he became the majority shareholder, said Bonatla had previously been "heading for liquidation" because of a risky debt structure it had in place.

He said Bonatla had previously had an interest-rate swap structure with Nedbank, which had significantly increased its debt.

"We've dismantled the swap at about R26m. At the point of closing the swap, Bonatla was in serious trouble, but we negotiated with Nedbank, and they agreed that we should convert the debt into equity via the issue of preference shares to Nedbank," said Rainier.

He said the company was now "solvent".

Bonatla at the moment does not own any properties having sold off its property portfolio, but Rainier said Bonatla was planning to buy more properties.

He said the company had appointed an asset management company to help it build up its property portfolio.

Business Day
 
Publisher: I-Net Bridge
Source: I-Net Bridge