Mayfair issues

Can anyone please enlighten me on the following...

From what I can gather through a press release I read earlier it appears that Mayfair Speculators owes three banks a lot of money ( apparently R 1.2 billion ). One of the banks is said to be owed around R 800 million.

My question is how is it possible for one bank to give out so much money to one individual ( company ) to do business in a market as volatile as the horse racing industry...

And secondly, is it possible for Joe Average like me to pop into my local bank tomorrow and apply for a loan to buy a racehorse ? I know people borrow money to buy boats, bikes and other toys but surely a horse is a bit extravagant.

And lastly, shouldn't the bank bosses carry some blame for allowing those below them to give out such large sums of money. Surely more than one person knew about all this.

His shares at Steinhoff was used as collateral and at the time the value of these shares was at their peak. Due to the share price in free fall they are at a huge risk as the collateral used is not what it was at the time of the agreement.

Firstly Mayfair did not only exist for race horses, it had other assets , shares and property as well as unlisted business investments. The amount of money owed to the bank is a pimple of what Jooste’s. NAV was at the time when he got the loans. Don’t forget horses in the past have been a great opportunity to write off against income . Banks had security in terms of debt covenants . The question one should ask is why did the auditors suddenly decide to not sign off the accounts when presumably a few weeks earlier they agreed to the company spending billions buying back shares in the market above R60.00, the share buyback is in effect shareholders cash. And yes you could pop into a bank tomorrow to apply for a loan to buy racehorses if you have assets to back the facility.