Chapter 11 Bankruptcy and South African Reserve Bank

South African Reserve Bank: South Africa s central bank put Abil, as its known, into curatorship, akin to Chapter 11 bankruptcy, on Aug. 10 after the lender said it needed at least 8.5 billion rand $800 million of capital to survive. Abils shares were suspended on Aug. 11 after the South African Reserve Bank split the firm into a good bank and a bad book, and arranged for institutions to underwrite a 10 billion-rand capital increase, according to Bloomberg. Losses have been incurred, for which we apologize, Coronation, which manages the equivalent of about $54 billion, said in a statement. This has been a humbling experience for us. We do not like to make mistakes and African Bank Investments Ltd. ABLs largest shareholder, Coronation Fund Managers Ltd. CML , apologized to investors and said it had learned a sobering lesson after its stake in the failed lender was wiped out. Coronation held about 22 percent of Abil before the company released a trading update on Aug. 6 that precipitated a drop of more than 90 percent in its share price, according to data compiled by . The Cape Town-based fund manager then cut its holdings to less than 9 percent by Aug. 8, it said. (news.financializer.com). As reported in the news.