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Will we hear if there was any interest in a buyer or not?
Pretty good RNS. It's more likely now than before that..... "common sense will prevail"...... AMCU I am sure that AMCU will honour their 'AIP' first reached on 25 Jan 2017 may be with some minor amendments, given that talks are now taking place under the supervision of : "Discussions continue between AMCU and the BRP under the supervision the South African Commission for Conciliation, Mediation and Arbitration." IDC Formal agreement entered with IDC today. Very important detail was highlighted today, that might explain previous reluctance by IDC to agree the terms. "Further to the announcement of 14 February 2017, a formal agreement (the "IDC Agreement") has been entered into between the IDC, the BRP and DiamondCorp Holdings Limited ("DCH", a wholly owned subsidiary of the Company), in relation to, inter alia, the ability for DCH to advance a PCF loan or loans to the Group's operating subsidiary LDM (a "LDM PCF Loan"), with any such loan(s) secured against the assets of LDM on a basis senior to all existing indebtedness of LDM with the exception of the first c.ZAR1.2 million that will shortly be ceded by the IDC from proceeds of a recent insurance claim received by LDM." Pay attention to this line: with any such loan(s) secured against the assets of LDM on a basis senior to all existing indebtedness of LDM. My interpretation as below: DiamondCorp Holdings (DCH) PCF loan to LDM will be secured will rank SENIOR to all "existing" indebtedness of LDM. This pushes IDC loan secured on LDM down and comes after DCH loan finance. So in future IDC loan finance will rank lower than DCH PCF loan. At least that's my interpretation of that paragraph.....have read that 5 times now. So going forward IDC will have to behave. As soon as AMCU talks are agreed, BRP will then publish the 'Business Rescue Plan'.
Arrived in UK early hours of the morning. Although the weather's "brass monkeys", waking up to this update gives one a much warmer feeling.
At least the biggest potential banana skin has been side-stepped and I believe that fund-raising should be achieved in both phases. The union will want firm commitments to the workforce and the early hold up in mining has shaken everyone's confidence. I will re-iterate my view that DCP will not re-list in the short term as it in everyone's interest that the company re-launches on a far more solid basis.
Good news. Never underestimate how intransigent and self-destructive a union can be though...
What are the next steps? and if it does, when is it likely to resume trading?
The fat lady just choked on a pork pie!!!! We are still in the game and hope for further positive progress. GL.
I don't believe there would be a problem with the union if IDC had cooperated earlier. Hopefully the union will see sense once again. A Its got to be seen as good news. Why IDC didn't agree earlier is almost criminal.
First hurdle of many cleared but still a long way to go
Am I missing something? There's an RNS saying they've reached agreement with IDC, that's no news?
No news? Pretty poor?
I take no pleasure in writing this but my experience of seeing end of play RNS's leads me to say the recent pattern of procrastination and delay without any real news means tomorrow will almost certainly be the final curtain. I hope I'm wrong......
Could not get hold of Ed Dyer as he was unavailable. May be has been in IDC meetings ?...who knows. Either way we will get another RNS probably at 07:00 notifying for another 2 week extension Or might hear of an agreement reached finally. Unfortunately we can only wait. Yes I appreciate that these delays just prolong the mine remediation work. But in the bigger scheme of things, I am happy to wait another 2 -4 weeks as long as we can secure a deal. Will try again for Ed tomorrow and ask that question: "when does it become unsustainable"?
I believe the billionaire you're referring to is Christo Weise who bought a big stake in Trans Hex a few months ago. I just hope regardless of what happens the PI's involved at least get something back, no doubt the vultures are circling for a taste of this one.
A few months ago there was a lot of talk about a billionaire who may be looking at diamond companies. No mention now but makes you wonder why it is taking so long to sort things out
It is hard to say what is really going on behind the scenes.IDC would only want DCP to fail if something corrupt or untoward was going on which of course we would have no idea about? It would be nice to have some positive news after the last negative RNS?
Can anyone come up with my opinion that IDC want DCP to go broke? They don't seem willing to compromise to me.
An interesting development - NEF merges with IDC to advance development of black industrialists, 15th February 2017 By: Megan van Wyngaardt "The decision is also in line with government policy to consolidate South Africa’s development finance institutions (DFIs) to provide effective support to emerging and existing black entrepreneurs and, thereby, enhance efficient service delivery." "The departments of trade and industry and economic development will appoint a technical team to drive the process expeditiously. Trade and Industry Minister Dr Rob Davies would also continue to provide legislative and policy guidance to the NEF". The departments are confident that the integration of these two leading DFIs will enhance the country’s developmental aspirations as outlined by President Jacob Zuma in his State of the Nation Address. In doing so they will “open up the economy to new players, give black South Africans opportunities in the economy and . . . help make the economy more dynamic, competitive and inclusive. This is our vision of radical economic transformation.” Read the full article - http://www.engineeringnews.co.za/article/nef-merges-with-idc-to-advance-development-of-black-industrialists-2017-02-15/rep_id:4136 ----------------------------------- It remains to be seen whether IDC will can make a formidable impact on the future of labourers at the Lace mine. Also perhaps prudent to ask if anyone else has considered where DCP's BEE partners sit in all of this as I have neither seen nor heard them offering any rescue assistance?
If you have a capital gains tax bill you can claim the loss against it?
Now, here's a question ... I - like most here - have a wide & varied share portfolio ... I certainly do not want DCP to go under ... as my partner & I have a few thousand invested ... BUT ... my other shares have done well in 2016/17 and my question here is ... if DCP does not sadly recover ... will the loss be "claimable" against profits on our other investments? thank you in advance ... BB -- fortune favours the brave --
MrP, thanks for advising & trust you managed to recharge over the weekend. You mentioned - "Think this will again get extended till mid-March if no agreement finalised by 28 Feb....and so on....until agreement is finally reached with IDC, no matter how long it takes. imho" - I agree proceedings may be extended until mid or perhaps end March. My concern however is daily escalating costs in terms of repair, remediation & salaries as well as that of BRP cost & practitioners fees. Question is; When does it become unsustainable in the reasonable view of the Practitioner & the Court?
No reply yet. Will try to follow up Monday as Thu / Fri was pretty hectic for me. Yes IDC is being a pain here 😡 Think this will again get extended till mid-March if no agreement finalised by 28 Feb....and so on....until agreement is finally reached with IDC, no matter how long it takes. imho Court can clearly see business can become quite successful and will not let it wind up just because IDC are being an A*s. No way IDC will want it to go down as the backlash will be a monster, especially SA credit ratings being downgraded last year. They want to build bridges here NOT burn them in order to attract foreign direct investment. That landmark court ruling this week might just be the very 1st step sending a message to World's Investment community that SA is....."Open for Business".......we are sorting out our mess.....so you can invest the $$$$... At least that's my view and how I read it....actually could restart the confidence in mining once again.
idc are definitely causing me stress. What do you reckon happens on the 28th?
Thanks MrP, have you perhaps had any reply from Deloitte in regard to EOI from shareholders? tozerk, I have those same thoughts. The AMCU would not need to review a previous in-principle agreed proposal that is implemented within a reasonable timeframe but the IDC stalling tactic seems to be creating additional stress & concerns for labour as their suffering becomes protracted as opposed to a swift conclusion through decisive action.
Would we be having a problem with the AMCU, if IDC had come to an agreement/? I don't think so. IDC are the key to this situation, break through them and we're good to go.