Rockwell Diamonds has released new information regarding the liquidation application brought by C-Rock Mining against three subsidiaries of the company.
This resulted in a provisional liquidation order having been issued by a judge in Kimberley, South Africa on 23 March 2017 in respect of Rockwell Resources, HC van Wyk Diamonds and Saxendrift Mine.
Rockwell Diamonds has previously stated that on 18 May 2017 the three subsidiaries attended before the High Court of South Africa, Northern Cape division, in respect of certain creditors’ applications to place the subsidiaries in business rescue.
The applications resulted in the commencement of business rescue proceedings for the three subsidiaries pursuant to an order of the court.
The commencement of business rescue proceedings has effectively suspended any liquidation proceedings.
Accordingly, the court hearing to consider the merits of the liquidation application which had been scheduled for 22 June 2017 has been postponed to October 31 2017, with the consent of all parties.
This date is subsequent to the proposed business rescue plan filing, which if accepted will also likely be compelling with respect to the liquidation application.
The appropriate manner in which to deal with the suspended liquidation application will be included in the business rescue plan.
The appointed business rescue practitioners, Peter van den Steen and Trevor Murgatroyd of Metis Strategic Advisors, are actively working alongside the Rockwell Diamonds’ management to prepare a business rescue plan, which will deal with all claims against the respective subsidiaries.
The business rescue plan is required to be published on or before 30 September 2017.
Furthermore, Stephen Le Roux has recently been employed to lead Rockwell Diamonds’ Middle Orange River operations.
Tjaart Willemse, who was contracted to lead the turnaround plan back in September 2016, will be working with Le Roux and the team to ensure that the Rockwell Diamonds is equipped with appropriate management resources to be able to continue managing the business after Willemse’s scheduled departure at the end of September 2017.