JOHANNESBURG, May 19 (Reuters) - Administrators of the furniture arm of failed lender African Bank Investments said on Tuesday creditors were paid 14 percent of what they were owed by Ellerine Furnishers, which had debts of around 1.3 billion rand ($109 million).
Administrators Matuson Associates said they paid out 14 cents for each rand owed, higher than the previously anticipated 13 cents per rand.
Ellerine was forced into business rescue last year, which allows for temporary protection from creditors, as parent African Bank Investments crumbled under bad debts.
The administrators also said they were in talks with several potential buyers for stores outside South Africa and may not receive as much as they had previously anticipated.
Matuson Associates said last year they had received an indicative offer of 400 million rand for Ellerine’s stores in other African countries from a listed South African retailer but Matuson said he was no longer sure he would receive that amount.
“We’re in talks with several parties,” said Les Matuson, who is in charge of the business rescue.
“I’m not sure we’ll get the 400 million,” he said but did not elaborate on whether the previous offer had changed.
$1 = 11.9110 rand Reporting by Helen Nyambura-Mwaura; Editing by James Macharia
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