African Bank Fights Collapse in Espirito Santo-Like Drama
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African Bank Investments Ltd., which plummeted this week after surprising investors with the need for more funding, is counting on shareholders or the government to stave off collapse.
South Africa’s largest supplier of unsecured loans slumped 90 percent since saying on Aug. 6 its chief executive officer and founder resigned, losses will be at a record this year and it requires about $791 million of new capital. The bank has cut funding to its money-losing Ellerines furniture retailer to shore up returns.