1 Dec 2015 09:00
International Ferro Metals Limited - Publication of Business Rescue PlanInternational Ferro Metals Limited - Publication of Business Rescue Plan
PR Newswire
London, December 1
1 December 2015
International Ferro Metals Limited
(“IFL” or the “Company”)
Publication of Business Rescue Plan
Further to the announcement released by the Company on 15 September 2015, the Company announces that the Business Rescue Plan (“Plan”) in respect of its South African subsidiary, International Ferro Metals (SA) (Pty) Limited (“IFMSA”) proposed by the Business Rescue Practitioner is now available on the Company’s website.
The Plan will be considered by creditors at a meeting on 7 December 2015.
At that meeting, the Business Rescue Practitioner will seek approval of the Plan to implement an offer received from Samancor Chrome Limited (“Samancor”).
It currently is not possible to assess with any certainty what potential return may be received by the Company if the Plan is implemented because of uncertainties related to future costs and cash flows to fund the business rescue proceedings. The Plan does provide an illustration and estimate of the potential distribution to creditors of IFMSA in terms of the Plan. The Plan assumes that the proceeds derived by IFMSA from the proposed transaction will be an amount of R720 million. However, it is no more than an example and is not binding on the Business Rescue Practitioner. The illustration is subject to change depending on the circumstances at the time the distribution is to be made.
The principles of the offer from Samancor are as follows:
currently is non-binding, and will only become legally binding once comprehensive sale and purchase agreements are executed; has offered an aggregate consideration of ZAR720 million of which: ZAR650 million is for the business and assets of IFMSA; and ZAR70 million is for certain receivables of Sky Chrome; is subject to a number of conditions being satisfied before Samancor would be required to complete the acquisition, including obtaining regulatory approvals and consents of other parties to certain material contracts, which are usual for transactions of this nature.Further announcements in relation to the Business Rescue process will be released in due course.
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For further information please visit www.ifml.com or contact:
International Ferro Metals Limited Tel: +27 14 574 6302
Chris Jordaan, Chief Executive Officer
Numis Securities Limited Tel: +44 (0) 20 7260 1000
James Black / John Prior / Paul Gillam
About International Ferro Metals:
International Ferro Metals produces ferrochrome, the essential ingredient in stainless steel, from its integrated chromite mine and ferrochrome processing operations in South Africa. International Ferro Metals is listed on the London Stock Exchange under the symbol IFL.
Forward Looking Statements
This announcement contains certain forward looking statements which by nature, contain risk and uncertainty because they relate to future events and depend on circumstances that occur in the future. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by these forward looking statements.