The Independent Development Corporation of South Africa (IDC) has mounted an application for Kalagadi Manganese to be put in business rescue over claims that it was struggling to pay its creditors.
Documents filed in the South Gauteng High Court by the IDC, which owns a 20 percent stake in the miner and is also a creditor, paints a bleak picture of its inability to meet loan repayments. It claims that the financial situation of the company established in 2001 by Daphne Mashile-Nkosi has reached a stage where it cannot continue advancing funds or deferring repayments as either lender or shareholder.
“Something has to be done to rescue the business. . . as the largest creditor, it can best be achieved by placing the first respondent’s business in the hands of experienced business rescue practitioners,” read the papers seen by Fin24.
The IDC, a government-backed development finance institution, said its exposure in Kalagadi was R3 billion. Among the claims contained in the court, the document is that Kalagadi failed to meet repayments for a $12 000 000 loan facility with the African Development Bank. — fin24.com.