Attention: All Affected Persons of Hernic Ferrochrome Proprietary Limited (in business rescue)

Transcription

1 Hernic Ferrochrome (Pty) Ltd R/E of Ptn 103 De Kroon 444 JQ P.O. Box 4534 Brits 0250 South Africa Attention: All Affected Persons of Hernic Ferrochrome Proprietary Limited (in business rescue) Dear Sir / Madam 29 June 2018 NOTICE TO THE AFFECTED PERSONS OF HERNIC FERROCHROME PROPRIETARY LIMITED (IN BUSINESS RESCUE) ("THE COMPANY") IN TERMS OF SECTION 132(3)(b) OF THE COMPANIES ACT 71 OF 2008 Attached hereto is a copy of the progress report in relation to the business rescue proceedings of the Company for June Yours faithfully Peter van den Steen Trevor Murgatroyd tel fax Reg. No. 1994/008293/07 NON EXECUTIVE DIRECTORS: R Havenstein (Chairman) Y Doida* AC Fourie S Nakahara* R Karstel *Japanese

2 Companies and Intellectual Property Commission Republic of South Africa Form CoR Business Rescue Status Report About this Form This form is issued in terms of section 132 and 141 of the companies Act, 2008, and Regulation 125 of the Companies Regulations, This Notice and the attached report must be published to every affected person, and to- a) The Commission, if the business rescue proceedings were started by the company; or b) The court, if the proceedings were ordered by the court. 29 June 2018 Date: MURGAT01 Customer Code: Concerning (Name and Registration Number of Company) Hernic Ferrochrome Proprietary Limited Name: Registration No: The above named company commenced business rescue proceedings on 21 September /008293/07. Because the business rescue proceedings have not concluded within three months, the appointed business rescue practitioner provides the attached report in terms of section 132 (3). A report and Notice must be issued at the end of the first three months of the business rescue proceedings, and at regular monthly intervals after that Contacting the Commission The Companies and Intellectual Property Commission of South Africa Postal Address PO Box 429 Pretoria 0001 Republic of South Africa Tel: Name and Title of person signing on behalf of the Practitioner: Ryan Smith - Attorney for joint business rescue practitioners Authorised Signature: This form is prescribed by the Minister of Trade and Industry in terms of section 223 of the Companies Act, 2008 (Act No. 71 of 2008).

3 _1.docx Hernic Ferrochrome Proprietary Limited (in business rescue) with registration number 1994/008293/07 (the "Company") Business Rescue Status Report in terms of Section 132(3) of the Companies Act 71 of 2008 ("the Act") 1. Introduction This report is for the month of June 2018 and is published as an update to the business rescue status report for the month of May 2018 published to affected persons and filed with the Companies and Intellectual Property Commission. 2. Implementation of the Adopted Business Rescue Plan 2.1 The adopted business rescue plan is being implemented in accordance with the terms thereof. 2.2 All of the conditions precedent of the Sale of Business Agreement (as referenced in paragraph of the adopted business rescue plan) are being progressed. 2.3 We set out below an update on certain of the remaining conditions precedent: Section 11 Application The section 11 application has been finalised and was submitted to the Department of Mineral Resources on 11 June 2018, for the relevant Ministerial consent; and Competition Application The competition application continues to be finalised and it is hoped to be submitted to the South African Competition Authorities by mid-july 2018 for approval. The foreign competition filings will follow thereafter. 2.4 Samancor Chrome Limited has nominated its subsidiary, K (South Africa) Proprietary Limited as the Nominated Purchaser under the Sale of Business Agreement, which nomination has been accepted. Samancor Chrome Limited guarantees the obligations of the Nominated Purchaser.

4 2 3. Creditors' Meeting On Friday, 15 June 2018 at 10h00, an ad hoc meeting of creditors was held, at the Casa Grande, to provide the creditors with a general update as to the progress of the business rescue proceedings and to provide creditors with an opportunity to pose questions to the business rescue practitioners. 4. Litigation Update 4.1 We refer to the urgent application for the postponement of the section 151 meeting brought by the Industrial Development Corporation of South Africa Limited ("IDC") on 28 March As previously advised, the application was successfully opposed and the IDC was ordered to pay the costs occasioned by the successful opposition of the application. 4.3 A bill of costs (which sets out all attendances and costs incurred by the business rescue practitioners in opposing the application) has now been prepared in the amount of R135, This has been delivered to the IDC for payment and the business rescue practitioners will pursue this recovery accordingly. 5. Market Conditions 5.1 Market conditions appear to have stabilised. The FeCr price in Europe decreased by US4c/lb for Q3/2018, which is lower than expected and increased in China by US9c/lb for July. The Rand US Dollar deteriorated to current levels of Market indicators and forecasts continue to indicate that despite minor losses that are expected to be incurred over the winter months due to higher electricity cost and lower production, the Company is in a position to weather the storm. The Company's financial position is monitored continuously by the BRPs and management. 6. Local Community Engagement The Company has continued with meetings with leadership from different communities surrounding the Company in an effort to find common ground.

5 3 7. General 7.1 To date, undisputed amounts due to suppliers to the Company and amounts due to employees continue to be paid in the ordinary course, as and when payments have fallen due. The shareholders loan claims remain subject to the moratorium. 7.2 The Company continues to produce and operate in the ordinary course. SIGNED AT JOHANNESBURG THIS 29 th DAY OF JUNE 2018 Peter van den Steen Trevor Murgatroyd