Addressing the parliamentary portfolio committee on mineral resources and energy on Tuesday, lawyer for Optimum’s business rescue practitioners, Bouwer van Niekerk, said that while there are three bids on the table, the difficulty arises around funding the ramp-up of the mine.
Although a proposal is still forthcoming, it could be that Centaur converts a large portion of its debt into equity in Optimum and potentially inject funds into the business to aid its restart. Business rescue is a form of bankruptcy protection for distressed entities as provided for in the Companies Act. The rescue process has been frustrated over the years, notably by a barrage of court challenges many of which were launched by Oakbay Investments and other businesses linked to the Guptas.Optimum was unable to pay salaries in November 2018, and in April 2019 retrenched the workforce. The mine is not operational and is on care and maintenance.
He said continued business rescue efforts are the best option for Optimum. “If you do not succeed in the business rescue process and you liquidate, you lose a substantial amount of value. That would be catastrophic,” Van Niekerk said.
Source: News Formal (newsformal.com)
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