WINDHOEK – A statement sent yesterday from Trustco Group Holdings indicated that Next Capital Limited, which is an investment vehicle for Quinton van Rooyen and family, intends to write off a N$1 billion loan made to Trustco. Trustco Group Holdings is a majority family-owned and operated business with segments in financial services and resources, led by Van Rooyen.  

Industry insiders suspect the write-off was affected to reduce debt on the Trustco Holdings balance sheet in preparation for trading on the OTC Markets Group, which is a North American operator of financial markets and global securities. OTC Markets Group recently confirmed that Trustco Group Holdings became the first Namibian company to qualify to have its American Depository Receipts (ADRs) trade on the OTCQX Best Market.

“Shareholders are advised that the Lender (Next Capital) gave notice of its intention to write-off the entire capital amount of N$1 billion, which total amount was on-lent to Trustco Resources (Pty) Ltd, and must reflect as such in the books of the subsidiary effective 30 September 2019,” read the statement from Trustco Holdings. Trustco Resources is involved in diamond mining in Sierra Leone. 

Meanwhile, the statement continued that “Shareholders were advised as per clause 2.1.4 of the Circular that during the term of the loan, the Lender, has the right and may elect to postpone or write-off any portion of the capital amount. The Lender would give 30 (thirty) days notice to the Trustco Board of the Lender’s decision to postpone or write-off the Capital Amount or any portion thereof which was lent to the Borrower”.   

 “The write-off of the Capital Amount is to further deleverage the balance sheet of Trustco and support the Resources Segment while the Group prepares for a possible IPO (Initial Public Offering) of the Resources segment”, said Van Rooyen as managing director of Trustco. 

“Shareholders were advised that the Borrower might have on-lent the Capital Amount or a portion of the Capital Amount to a subsidiary or operating segment. Once the Lender elects to postpone or write off the Capital Amount or a portion thereof, the Borrower must align the postponements and/or write off of the Capital Amount accordingly to reflect the Lender’s decision in the Borrower’s subsidiaries or operating segment,” read the statement. 

Yesterday’s communiqué noted that Trustco Board of Directors waived the 30 days notice period required for the Next Capital to give notice of the decision to write-off the capital amount lent to Trustco Holdings.