The short-term borrowings (amounting to R10.2bn) of Rebosis Property Fund, which are mostly due in 2021 to commercial banks, amount to more than the R320.8m in cash reserves on the company's balance sheet - rendering it technically insolvent.
The debt crisis that has bedevilled Rebosis Property Fund over the past four years has intensified as the first black-owned and black-managed real estate company to list on the JSE is technically insolvent.
Rebosis, which owns mostly shopping centres and office properties across SA, revealed in its 2020 annual report that its current liabilities exceed the value of its current assets by R9.8-billion at a group level - rendering the company technically insolvent.
In other words, Rebosis's short-term borrowings (amounting to R10.2-billion) that are mostly due in 2021 to commercial banks - including Nedbank, Investec, Standard Bank, RMB, Absa and Sanlam - are more than the R320.8-million in cash reserves on its balance sheet. Rebosis's short-term borrowings are also larger than the value of its A and B shares on the JSE, which have a combined value of about R195.5-million.
The Rebosis annual report was probably missed by investors as it was published on New Year's Eve at 12.50pm - ending a...