IDC in court move over Gupta rescues
The Industrial Development Corporation is said to want the business-rescue practitioners assigned to Gupta-owned companies replaced with its own communication personnel.
The Industrial Development Corporation (IDC) is said to want the business-rescue practitioners assigned to Gupta-owned companies replaced with its own communication personnel.
The development financier may also be a step closer in recouping a multimillion-rand loan to the Guptas for the purchase of Shiva Uranium, as two potential buyers have placed offers for the asset.
The IDC matter is scheduled to be heard in the high court next Tuesday, two weeks before Louis Klopper and Kurt Knoop, the business-rescue practitioners nursing eight Gupta assets back to financial health, are due to publish detailed plans on how they plan to revive the fortunes of the Gupta businesses.
The corporation has also petitioned the high court to recoup its money.
Klopper and Knoop’s business rescue plans for the eight Gupta companies are to be published on April 23.
Publication was scheduled for Tuesday, but in letters addressed to creditors the business rescue practitioners have asked for an extension.
In one of the letters it is revealed that a court application by the IDC to remove Klopper and Knoop — and appoint its own practitioner — will be heard on Tuesday.
“In the circumstances we kindly request a short indulgence from the general body of creditors for a period of 22 days … for the publication of the plan‚” the letter reads.
The internal communication also shows that Klopper and Knoop’s efforts are starting to bear fruit, as there are revelations that Shiva Uranium has two potential buyers.
The suitors have placed offers of $50m and $35m for Shiva.
The offers are subject to due diligence and conditions and have not been finalised.
In 2010, the Guptas bought Shiva for R250m using a loan advanced by the IDC.
The inflated price for Shiva Uranium may be explained by its “purchase” in January 2016 of Brakfontein Coal Mine near Delmas from Tegeta Exploration and Resources, another Guptaowned company.
Funds from the sale of Shiva Uranium would have to be used to settle about R280m owed to the IDC. A portion of the funds‚ not clarified in the communication‚ would be used to settle an undisputed claim from the IDC while the remaining money would be ring-fenced to settle an additional sum claimed by the development financier that is in dispute.
Klopper and Knoop have also entered into an agreement with one of the suitors to run Shiva and provide banking facilities for two months while the business rescue plans are finalised‚ published and voted on.
Optimum and Koornfontein mines will be run with help from a “reputable entity in mining” in the latest move by business rescue practitioners to circumvent the closure of bank accounts.
A 12-month coal export supply agreement has been concluded for 200‚000 tonnes of premium coal. An 80% prepayment on the deal, which “ensures a significant cash injection for the company”, will be paid on Friday.