22 Jan 2017

BCL provisional liquidator Mr Nigel Dixon-Warren has cleared some speculations regarding the process and progress of provisional liquidation of Tati Nickel Mining Company, BCL Ltd and BCL Investment (Pty) Ltd.

He said on February 7,  the High Court would decide if the companies (BCL and Tati Nickel) should be placed under final liquidation under the order which was granted on October 9, 2016.

He noted that the court could also decide to extend the provisional liquidation period and delay the final wrap up.

When questioned about the expectation of the final liquidation, he said the provisional liquidation should be demonstrated to the satisfaction of the court that the companies were insolvent in which on his assessment all the three companies were fatally insolvent.

However, he noted that February 7 would not be end of the provisional liquidation period saying it would only be after the 7th when the formal liquidation process commences.

He stated that status of the Norilsk matter was that there was a dispute between parties to the purchase agreement of shares at Nkomati Mine.

He said one of the issues on the table was to determine whether the condition precedents were met and whether the contract was still viable and in full force since the date of provisional liquidation for BCL Mine and its assets.

He said Norilsk had taken legal action against the provisional liquidator.

In terms of operations commencing at the mines, he said operations were not expected and there were no intentions of starting operations in the next few months or after the first meeting with the creditors as the companies are insolvent and there are no resources available to finance the operations.

He highlighted that the operations at the mines were in care and maintenance so as to maintain and safe guard the assets like keeping the mines water free which accumulates underground as a result of normal operations.

In terms of creditors owed by BCL, he said there would be a formal meeting convened by master of the high court and the reason behind being that creditors can prove their claims against the companies so that they can issue instructions to the liquidator and ultimately receive payment against their claim at the end of liquidation process.

He also said there are some incidents of theft and intrusion at the mines but they have been relatively minor as there is security at BCL and Tati Mine sites.

He also confirmed that quite a number of employees were paid their terminal benefits before festive holidays.

He urged all individuals who have not yet been paid to come forward to finalize their terminal benefits payments. BOPA