DISTRESSED

Good day

1. I sent an email on 02 June 2022, to ***, and today to ***, and ***. 2. The content of the email refers to:

REQUEST FOR DEBT/PAYMENT RELIEF AND RESTRUCTURING: *** This is in reference to a request for debt/payment relief and restructuring of account no.***.

1. The company is involved in the construction industry and started as middlemen buying and selling crushed stoned, used in the building, roads maintenance and railway infrastructure. 2. The construction industry Post-Covid recovery has been slow due to the government's slow pace to roll out key infrastructure projects. According to the Moneyweb article published on 03 March 2022, At least R16 billion in SA National Roads Agency (Sanral) tenders have been adjudicated but not awarded. An analyst estimates that the total value of delayed Sanral contracts could be as high as R25 billion. Further evidence has also been provided by JSE-listed South African construction companies about the slow rollout of infrastructure projects. Sanral delays awarding tenders worth at least R16bn 3. Similarly, the South African National Roads Agency (Sanral) has cancelled adjudicated tenders to the value of R17.47 billion in the past week, throwing the sustainability and viability of South Africa’s civil engineering industry into doubt. 4. The judgment (16 February 2022), in Minister of Finance v Afribusiness NCP set aside the Preferential Procurement Regulations are published under the Preferential Procurement Policy Framework Act (PPPFA), which is the main legislative guideline for the public procurement system. It has been mandatory for all public bodies, including government departments and state-owned entities, to follow these Regulations since at least 2012. a. The Constitutional Court did not make its own order but confirmed the SCA’s order of invalidity which was suspended for a year. The order of the SCA was itself suspended as a result of the lodging of an appeal against it to the Constitutional Court. Thus, the legal position should be that the SCA’s declaration of invalidity is revived and is again suspended for a year from the date of the Constitutional Court the decision to allow National Treasury the time needed to put in place a replacement system by February 2023. b. Despite this, on Friday, 25 February 2022, National Treasury issued what was then understood to be an ‘instruction note’ to all organs of state that does not follow this approach. c. While National Treasury indicated that the Minister of Finance was seeking urgent confirmation from the Constitutional Court that the approach set out in the paragraphs above are the correct approach, it ‘instructed’ organs of state to: i. finalise tenders that are subject to the Preferential Procurement Regulations before 16 February 2022; ii. halt all such tenders issued on or after 16 February 2022; and iii. not advertise any new tenders in terms of the Preferential Procurement Regulations. d. This was obviously a difficult position for organs of the state which may have multiple tenders in the market at any stage, as well as for companies participating in a public procurement process. e. On 30 May 2022, the Constitutional Court told Finance Minister Enoch Go****wana that there was no need to suspend all government procurement and that he had "misread" their judgment on the preferential procurement regulations, handed down on 16 February 2022. IMPACT OF OPERATIONS DUE TO COVID 19 2020: o Hard lockdown: ▪ 3 months could not operate, and our overheads. o App**** through the COVI19 Guarantee Scheme Term Loam with Standard Bank, in June 2020. It should be noted that the loan assisted to a point to meet our month's overheads because we could not operate for a further three months due to the Covid 19 Regulations. o Level 3: ▪ we were able to partially operate, but it should be noted there were government entities, which could not assist on compliance issues due to regulations gazetted in terms of the Disaster Management Act. 2021: o It should be noted, that we experienced a lot of restrictions due to sudden increases in the number of Covid Cases, including a lot of waves, which disrupted our operations. However, our monthly obligations had to be met. o Similarly, the operations of our major customer were hugely disrupted due to non-operation and Covid 19 cases experienced by their employees.

2022: Due to an unforeseen act of God, the were floods in KZN, which have diverted the attention of the whole country, to repair the infrastructure that has been damaged. Furthermore, the world is in a crisis due to the war in Ukraine, which has exacerbated unfavourable market conditions, worldwide which are unconducive.

ARREARS AND RESTRUCTURING

1. We would like to request that, the arrears be added to the principal debt, and the AVF term loan be extended to accommodate these arrears. 2. Additionally, we would like to request to pay 50% of the monthly instalments, for three (3) months, starting on 01 July 2022 – 01 September 2022.

Thank you in advance. Yours faithfully