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Sah - South African Coal Mining Holdings - Further Update On Restructuring

Release Date: 09/10/2009 13:00:01      Code(s): SAH
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                                                                 
ISIN: ZAE000102034                                                              
("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  
in mid-2010.                                                                    
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  
December 2008.                                                                  
9 October 2009                                                                  
Sponsor : QuestCo                                                               
Date: 09/10/2009 13:00:01 Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department                             .                  
The SENS service is an information dissemination service administered by the    
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or            
implicitly, represent, warrant or in any way guarantee the truth, accuracy or   
completeness of the information published on SENS. The JSE, their officers,     
employees and agents accept no liability for (or in respect of) any direct,     
indirect, incidental or consequential loss or damage of any kind or nature,     
howsoever arising, from the use of SENS or the use of, or reliance on,          
information disseminated through SENS.                                          

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