SAH - South African Coal Mining Holdings - Further update on restructuring
processes and extension of cautionary announcement
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")
Further update on restructuring processes and extension of cautionary
Update on restructuring processes
Further to the announcement released on SENS on 3 June 2009, the board wishes to
provide a further update on the restructuring of the SACMH group of companies.
Shareholders are reminded that the company`s mining operations were placed on
"care and maintenance" from 1 April 2009. At that point, the company embarked
upon a process of an operational, financial and equity restructuring.
From an operational perspective, the export price of coal has remained under
R500/ton since April 2009 as a result of both a relatively low dollar coal price
($56 - $65 / ton) and a strong rand. This has meant that the business case for
raising capital to re-open the mine remains difficult. The SACMH group has
therefore continued to rent out some of its core assets whilst the mine has
remained on care and maintenance.
With regards to the financial and equity restructuring, and as set out in the
previous SENS announcement, a compromise offer to creditors in subsidiaries of
the company ("the compromise") was filed in the Gauteng North High Court ("the
Court") on 2 June 2009. After two adjournments of creditors` meetings to
address alternative proposals and technical issues, the creditors met and
approved the four schemes of arrangement ("the schemes") which comprised the
compromise on 8 September 2009. On 1 October 2009, the Court sanctioned three
of the four schemes. The fourth scheme with the concurrent creditors (of SACM
Breyten (Pty) Ltd) was moved to the opposed court roll as one of the creditors
indicated an intention to "intervene". This matter will be heard by the Court
Further cautionary announcement
Discussions and negotiations which have evolved from the "Strategic Equity
Partner" process are ongoing. Management and the board are working hard to
ensure that a positive outcome is secured for shareholders. Shareholders should
therefore continue to exercise caution until a further announcement is released.
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
9 October 2009
Sponsor : QuestCo
Date: 09/10/2009 13:00:01 Supplied by www.sharenet.co.za
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