BL Premium reports that a court application by an unsuccessful bidder to stop the R300m sale of the Gupta’s Koornfontein coal mine to another party has been dismissed.
This clears the way for the mine to at last be sold after two years in business rescue. The Lurco Group, a black-owned junior miner, had approached the Johannesburg high court on an urgent basis to interdict Koornfontein’s business rescue practitioners from transferring the mine to 100% black-owned Black Royalty Minerals. The latter is a subsidiary of the Makole Group, which produces coal from an operation in Bronkhorstspruit. Koornfontein is one of eight Gupta-linked companies that have been in a protracted business rescue process since February 2018. Another such company is Optimum Coal. Workers at both mines have not been paid since October 2018. Initially, Lurco was the preferred bidder having offered R500m for the asset. The group was, however, unable to bring the funds from overseas to an SA bank account within five days, as stipulated in the creditor-approved business rescue plan. Consequently, Black Royalty Minerals was named the preferred bidder. Lurco approached the court because it viewed the condition to have the funds in an SA bank account within the stipulated time as unfair and irrational, given the strict exchange controls involved. On Tuesday, the judge dismissed the interdict application with costs.
- Read the full original of the report in the above regard by Lisa Steyn at BusinessLive (paywall access only)
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