ATLAS Mara Limited Update on Standstill and Statement re Norsad (1526V)

TIDMATMA

RNS Number : 1526V

ATLAS Mara Limited

12 April 2021

Atlas Mara Limited's Update on Standstill and Statement regarding Norsad

Key Highlights

-- Following the successful extension of the Standstill Agreement to 30 April 2021, Atlas Mara has continued to engage constructively with both ATMA and ABCH creditors towards agreeing and finalising binding legal agreements for a comprehensive debt restructuring

-- A stand-alone ABCH creditor that has not been a party to the Standstill Agreement, Norsad, has recently filed a Court petition in Botswana against ABCH

-- The Company and ABCH see Norsad's filing as detrimental to the interests of ABCH and its creditors as a whole, as well as to Norsad itself. The Company and ABCH will continue to seek to engage in discussions with Norsad to find a mutually acceptable resolution

-- In parallel, ABCH and its legal counsel will pursue all options available to ABCH to contest the petition, if required

-- Participating creditors continue to support the Company and ABCH in working towards the previously announced debt restructuring

-- The Company's and ABCH's subsidiary banks remain unaffected by Norsad's actions and their operations continue in the ordinary course

   --      Further updates will be provided in due course

Further Details

Atlas Mara Limited ("Atlas Mara" or the "Company" and, including its subsidiaries, the "Group"), the sub-Saharan African financial services group, hereby provides an update on progress made and developments in its discussions with bilateral lenders and certain principal holders of the Group's convertible bonds due 31 December 2020.

Following its announcements of 29 December 2020, 17 February 2021 and 1 April 2021, the Company continues to progress constructive discussions with all of the creditors who entered into the Standstill Agreement in order to finalise and execute legally binding agreements with respect to a restructuring of the Company's and ABCH's balance sheets.

As previously announced, all creditors of the Company who entered into the Standstill Agreement have substantially agreed commercial terms for the debt restructuring and the Company and ABCH continue to have constructive discussions with the ABCH creditors who entered into the Standstill Agreement. The Company expects to issue a further announcement in due course once the commercial terms have been agreed with the core group of ABCH's creditors.

While the Company and ABCH have attempted to engage with those creditors who have not signed up to the Standstill Agreement, the Company announces that it has been informed by ABCH that one of ABCH's creditors, Norsad Finance Limited ("Norsad"), served a petition with the High Court of the Republic of Botswana in Lobatse seeking to place ABCH under provisional liquidation (the "Petition"). The amount of outstanding debt related to Norsad is $10 million plus accrued interest, as compared to the approximately 90% of the Company's and ABCH's bilateral facility creditors and over 60% of the Company's convertible bondholders who have entered into the Standstill Agreement.

Norsad has not been a party to the Standstill Agreement, and therefore has not had access to certain confidential information available to participating creditors that the Company and ABCH believe confirms that this action is detrimental to Norsad's position. The Company and ABCH have strongly encouraged Norsad to engage constructively to avoid unnecessary value destruction to their own position and those of other creditors. The Company and ABCH will continue to seek to engage in discussions with Norsad to find a mutually acceptable resolution.

In parallel, ABCH and its legal counsel are considering the options available to ABCH and intend to robustly contest the Petition, if required. The participating creditors to the Standstill Agreement have been made aware of the Petition and remain supportive of the Company and ABCH while options are evaluated and discussions continue in order to work towards a comprehensive solution with the objective of maximising value for creditors and other stakeholders.

These actions pertain only to ABCH and do not impact the subsidiary banks, which operations continue in the ordinary course. The Company will update the market with any further material developments on the Norsad and TLG applications, the restructuring process and ongoing divestitures.

Contact Details:

Investors

Kojo Dufu, +1 212 883 4330

Media

Apella Advisors, +44(0) 7818 036 579

Anthony Silverman

About Atlas Mara

Atlas Mara Limited (LON: ATMA) is a financial institution listed on the London Stock Exchange. Atlas Mara aims to be a positive disruptive force in the markets in which we operate by leveraging technology to provide innovative and differentiated product offerings, deliver excellent customer service and accelerate financial inclusion. For more information, visit www.atlasmara.com.

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April 12, 2021 06:17 ET (10:17 GMT)

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