Auctions of BCL assets cleared to begin
Mbongeni Mguni | Friday November 10, 2017 17:39
The resolution is seen as the final nail in the coffin for BCL Mine, which went into final liquidation earlier this year and whose billions of pula in creditor and environmental liabilities make it undesirable to investors.
The mine’s creditors, who are owed in the region of P2 billion and P2.2 billion, comprise government, banks, the Botswana Power Corporation, Water Utilities Corporation and numerous suppliers.
At their first meeting this week, creditors appointed KPMG senior partner, Nigel Dixon-Warren as final liquidator and authorised him to begin auctioning off the mine’s assets. Dixon-Warren was the BCL provisional liquidator, following his appointment by the High Court.
While the original resolution was open in granting Dixon-Warren permission, government representatives intervened to amend it so that meetings of creditors are held before auctions of assets worth over P20 million.
Yesterday, Dixon-Warren told Mmegi that the auctions would only begin after the second meeting of creditors, which is expected in April.
“The resolution gives me permission indeed, but by law, I cannot touch anything until after the second meeting of creditors.
“The public auctions in particular take place right at the end of the process, when other options have been exhausted,” he said.
According to the resolution, BCL Mine’s assets will be sold via private treaty, public tender and public auction. Already, Dixon-Warren was able to secure High Court approval for the disposal of BCL Mine’s jet, which sold for P4.8 million earlier this year.
BCL Mine’s mining, property, plant and equipment assets were estimated to be valued at P268.1 million by last October, although reviews of the amount are underway.