Fin24 reports that around 200 employees at Naledi Foundry in Gauteng, which was placed into business rescue in April, have fears about their futures after the group's assets were put up for auction.

The foundry, which falls under the Naledi Inhlanganiso Group, is 46% owned by the Industrial Development Corporation (IDC), which has invested R557 million into the venture. When Naledi was placed into business rescue following unsustainable financial losses, it had 211 employees. Until production halted, it manufactured components for the mining, automotive and railway industries. Staff, who have been asked to stay at home, are now anxiously waiting to see what they will get from the auction. Naledi's business rescue practitioner, Lebogang Mpakati of Indalo Business Restructuring, confirmed last week that all the group's assets were up for sale. Final bids for the items on auction, which include multiple furnaces, workshops and 10ha of land, must be submitted by 28 October. Mpakati said creditors, stakeholders and business rescue practitioners would next meet on 30 November once the auction had been concluded. At that meeting, the business rescue plan will be updated and adopted, and the retrenchment processes for workers will officially commence.

• Read the full original of the report in the above regard by Jan Cronje at Fin24

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