Optimum discharged from ‘business rescue’
Business rescue practitioners Piers Marsden and Peter van den Steen are “satisfied that Optimum Coal is no longer financially distressed”.
|||Johannesburg - Troubled South African coal producer Optimum Coal Mine Proprietary Ltd has been released from “business rescue”, which is similar to Chapter 11 bankruptcy proceedings in the United States, its business rescue practitioners said on Wednesday.
In April, Oakbay Investments concluded a R2.1 billion ($145 million) deal to buy Optimum from Glencore in a transaction criticised by local media.
Oakbay is owned by the wealthy Gupta family, who are accused of undue political influence with President Jacob Zuma.
Business rescue practitioners Piers Marsden and Peter van den Steen said in a statement that they were “satisfied that Optimum Coal Mine is no longer financially distressed and can be discharged from business rescue”.
“The mine will now continue to trade under the management and control of the board of directors of Optimum Coal Mine,” they said.
Business rescue allows a financially distressed company to temporarily delay creditors' claims against it or its assets.
REUTERS