Business Rescue Plan for Finsch Mine
June 11, 26
(IDEX Online) - Petra Diamonds says business rescue practitioners (BRPs) will now see if they can find a way to save the Finsch mine, in South Africa.
They've taken custodianship of the beleaguered mine and will draw up a revised business plan that must be approved by creditors. That process is expected to take until the end of September.
Meanwhile the BRPs have started to wind down production at the mine, pending the outcome of the business rescue plan.
UK-based Petra announced last week that it was pausing capital expenditure at Finsch and placing it under bankruptcy protection (business rescue) to avoid liquidation and reduce spending.
It blamed "a structural shift on pricing of smaller sized diamonds", compounded by tensions in the Middle East and a strong rand.
In a statement issued yesterday (10 June), the company said: "The Business Rescue Practitioners have taken over the custodianship of the mine and will now begin executing all the legal requirements under the Business Rescue process, including the formulation of a Finsch specific business plan that they will put forward to the creditors for voting."
It said Daniel Theodorus Van Jaarsveld and Luke Bernard Saffy had been appointed as BRPs for Finsch.
File pic of Finsch mine.