BCL reaches its end, Tati gets lifeline
Mbongeni Mguni | Friday June 16, 2017 19:00
Tati Nickel and BCL Investments, the latter holding interests in several budding joint ventures and a 50% stake in Nkomati Nickel Mine, have had their provisional liquidation extended to December 15.
The extensions, applied for by lawyers representing provisional liquidator Nigel Dixon-Warren, suggest there are investors interested in Tati and BCL Investments’ assets who need time to conduct their evaluations and negotiations.
BCL Mine, on the other hand, is now at the mercy of bargain hunters and even auctioneers, should no concrete offer emerge during the two forthcoming creditors’ meetings that statutorily have to take place when final liquidation occurs. Yesterday, Justice Gaolapelwe Ketlogetswe granted three orders applied for by Dixon-Warren’s lawyers in pursuit of the final liquidation and the extensions.
Advocate Steve Vivian, representing Dixon-Warren revealed that until Wednesday, the provision liquidator was seeking final liquidation for BCL Investments as well. “We have received information from the shareholder being the Minerals Development Company of Botswana that critical negotiations are ongoing and if these work out, it will be to the credit of BCL Investments’ creditors,” Vivian said.
“This arose at the last minute, like yesterday, and we had to communicate with the shareholder’s attorney. We could not do the affidavit by that time, but I can tell you that we have that information.” Senior members of the Botswana Mine Workers Union, who have been attending each of the return dates for the liquidation process, expressed dismay at the latest developments regarding the copper and nickel group.
In a previous communication, Dixon-Warren revealed that he was pushing for final liquidation of the entire group, saying the companies were ‘hopelessly insolvent’. “Once the companies are in final liquidation the meeting of creditors can be held,” the provisional liquidator said.
“By law, there has to be two meetings of creditors. After the first meeting of creditors the sale process will commence, but the conclusion of any sale will only be after the second meeting of creditors.” The Master of the High Court will now set a date for the first meeting of creditors, possibly in August, when creditors will have an opportunity to prove their claims.
The proven creditors will also nominate the final liquidator. “The provisional liquidator also presents a report written in terms of the section 448 of the Companies Act. This report provides creditors with the details of the assets and liabilities of the companies as well as providing the reasons why the companies failed, amongst other matters,” Dixon-Warren said.
The second creditors’ meeting takes place three to six months after the first and is where the final liquidator will seek direction from the creditors as to the sale of the assets.