SAH - SACMH - Update on the proposed restructuring of the company Release Date: 03/06/2009 14:00:02 Code(s): SAH
SAH - SACMH - Update on the proposed restructuring of the company
South African Coal Mining Holdings Limited
(Incorporated in the Republic of South Africa)
Registration number 1994/009012/06
Share code: SAH
("SACMH" or "the company")
Update on the proposed restructuring of the company
Further to the announcements dated 30 March 2009 and 11 May 2009, the board
wishes to give an update on the proposed restructuring of the company. Mining
operations were placed on "care and maintenance" from 1 April 2009 and the
company is in the process of an operational, financial and equity restructure.
Operationally, expensive or ineffective sub-contractor contracts have been
terminated and management is in the process of rebuilding an operational model
that is more appropriate in the current market conditions. In the interim,
sundry income is being generated from certain of the non-mining assets of the
group such as short-term leases on the Umlabu and Blinkpan sidings and sales of
product from surface stocks.
Financially, a restructuring is in progress which includes, inter alia, a
compromise offer to creditors in subsidiaries of the company ("the compromise").
The compromise was filed in the Gauteng North High Court on Tuesday, 2 June
2009. The compromise includes, inter alia, a proposal to convert a portion of
the secured commercial bank debts into equity and a cash offer to remaining
The company has engaged Rand Merchant Bank, a division of FirstRand Bank
Limited, to advise on the process to facilitate the introduction of a strategic
equity partner ("SEP") to provide new capital to fund capital expenditure which
is expected to increase the production of the mine and improve economic
performance. Currently, several interested parties are involved in a due
diligence process which is expected to culminate in the receipt of equity
funding proposals. The company believes that this process will be completed by
the end of June 2009.
A subsidiary of Royal Bafokeng Holdings (Pty) Limited has made an interest-
bearing loan available to the company to fund the care and maintenance program
which loan will be capitalized on the introduction of the SEP.
Shareholders will be advised of further developments regarding the proposed
restructuring of the company in due course. The company`s shares will remain
suspended on the JSE Limited until the company is in a position to release
audited financial statements for the year ended 31 December 2008.
3 June 2009
Sponsor: QuestCo Sponsors
Date: 03/06/2009 14:00:02 Supplied by www.sharenet.co.za
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