Gupta business rescue: Shiva Uranium to be sold
After a little over a month‚ business rescue practitioners for eight of the Gupta family companies have revealed some of their plans to save the companies.
In a series of letters addressed to creditors of the various entities on Monday which the publication has seen‚ the business rescue practitioners Louis Klopper and Kurt Knoop request an extension for the deadline for publishing the business rescue plans.
The plans were due to be published on Tuesday but an extension will see the final plans published on or before April 25.
The first letter surrounds the Gupta-owned Shiva Uranium near Klerksdorp in the North West for which it is revealed there are two potential buyers.
Netoil Enterprises has offered a price of $50-million‚ roughly R600-million‚ while BEK Holdings Limited has offered $35-million‚ or R410-million.
The offers are subject to due diligence proceedings and conditions‚ and have not been finalised.
The Guptas bought Shiva for R250-million in 2010 with a loan from the Industrial Development Corporation (IDC).
The inflated price may be because Shiva Uranium had in January 2016 “purchased” Brakfontein Coal Mine near Delmas from Tegeta – another Gupta-owned company.
Brakfontein’s sole income source is a coal supply contract with Eskom‚ to supply the Majuba Power Station.
Funds from the sale will also have to be used to settle an amount of roughly R280-million owed to the IDC.
A portion of these funds‚ not clarified in the letter‚ will be used to settle an undisputed claim from the IDC while the remaining money will be ring-fenced to settle an additional sum claimed by the IDC that the company disputes.
Klopper and Knoop meanwhile have entered into an agreement with BEK Holdings to run Shiva and provide banking facilities for the next two months while the business rescue plans are finalised‚ published and voted on.
The letter also reveals that a court application by the IDC to remove Klopper and Knoop and appoint their own practitioner will be heard on April 10.
“In the circumstances we kindly request a short indulgence from the general body of creditors for a period of twenty two days until the 25th of April for the publication of the plan‚” the letter reads.
In a separate letter the same extension is requested for the publication of the rescue plan for Tegeta Exploration and Resources.
“We request a similar indulgence in respect of this matter [Tegeta] as a direct nexus exists between the two companies in that the Eskom contract exists in favour of Tegeta and the services to fulfil the obligations of such contract are performed by Shiva Uranium‚” the letter to Tegeta creditors reads.
This is a developing story.
Would you like to comment on this article or view other readers' comments? Register (it’s quick and free) or sign in now.
Please read our Comment Policy before commenting.