Business Rescue Update, Vametco Plant Shut Down, Asset Realisation and Going Concern.
Following the appointment of Piers Marsden and Jenna Osborne of Matuson & Associates as the joint business rescue practitioners (“Joint BRPs”) for Bushveld Vametco Alloys (Pty) Limited, Bushveld Vametco Holdings (Pty) Limited and Bushveld Minerals SA (Pty) Limited (collectively the “South African entities”), the Joint BRPs held a first meeting of creditors on 29 November 2024 where the Joint BRPs explained why the South African entities had been placed into business rescue. The Joint BRPs have also secured post-commencement funding and anticipate publishing the business rescue plan in January 2025.
The Company has now been informed by the Joint BRPs that they have commenced an extended plant maintenance shutdown at Vametco, which will continue until end-March 2025. The shutdown aims to rebase the business to optimise the turnaround by fixing the critical parts of the business that will efficiently generate revenue and ensure future sustainability. This period will allow sufficient time to plan, procure, and install critical components for the maintenance and sustainable operation of the plant. Once the plant is back online, it is anticipated its reliability will be enhanced, and it will operate close to full capacity.
Meanwhile, the Board is actively exploring various options to realise value from the remaining group assets. This includes engaging with the Joint BRPs to ascertain the amounts, if any, repayable to the Company, taking into account the position of the Company’s secured creditor.
Given the significant uncertainty surrounding the South African operations, the Board has consulted with the Company’s lawyers and an insolvency practitioner regarding their responsibilities and the options available. In the absence of sufficient value being realised from the assets or new capital being raised, it is unlikely that the Company can be considered a going concern.
Further announcements will be made in due course, as appropriate.
Enquiries : info@Bushveldminerals.com
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Bushveld Minerals Limited |
+27 (0) 11 268 6555 |
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Kate Bredin, Company Secretary |
