Balasore challenges Grant Thornton at High Court

INDIAN investor Balasore Alloys Limited (BAL) has successfully applied for an interdict to stop Grant Thornton International, ZimAlloys’ judicial managers, from terminating the $100 million contract to take over the giant ferrochrome producer after it allegedly failed to release the money within the agreed time-frame.

BAL approached the High Court recently seeking to bar Grant Thornton International from terminating the deal. The court then granted an interdict in the prospective investor’s favour.

The interdict prohibited and restrained the judicial manager and its representatives from taking any steps to cancel the scheme of arrangement and from engaging in any fresh bid or tender procedure in Zimbabwe or elsewhere, and from entertaining third parties in a Scheme of Arrangement.

. . . (b) that respondents, their agents, representatives and interested parties thereto be and are hereby interdicted from causing or motivating the publication of any information and material purporting to cancel applicant’s interests and participation in the Scheme of Arrangement,” reads the High Court ruling.

In a statement released last week, Balasore insisted that it would honour its commitment to ZimAlloys but was waiting for the implementation of certain prerequisites.

“The Balasore/ZimAlloys deal is very much alive as the investor remains committed to the takeover as long as the conditions precedent are met.

“Balasore Alloys Ltd does, notwithstanding several incomplete media reports, confirm that the company continues to be committed about the investment deal to purchase majority shareholding of Gweru-based ZimAlloys in a scheme of arrangements which, including termination clause, were sanctioned by the High Court of Zimbabwe in December 2017.

“Balasore Alloys Ltd will continue to adhere to its share of the obliging dialogue and cooperation with all local stakeholders on purpose of reaching legitimate conditions for standing stabilisation of ZimAlloys,” reads BAL’s statement.

Balasore Alloys Ltd claimed that it applied in court against the attempted termination of the deal by judicial managers Grant Thornton International and is unconditionally prepared to abide by the court ruling.