WSL - Wescoal Holdings Limited - Application to set aside liquidation Release Date: 04/11/2011 07:05:33 Code(s): WSL
WSL - Wescoal Holdings Limited - Application to set aside liquidation
WESCOAL HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2005/006913/06)
JSE Share code: WSL ISIN: ZAE000069639
("Wescoal" or "the Company")
APPLICATION TO SET ASIDE LIQUIDATION APPLICATION
Shareholders are referred to the announcement dated 31 October 2011 regarding
the application by BSM Mining (Pty) Ltd ("BSM Mining") for the liquidation of
Wescoal Mining (Pty) Ltd ("Wescoal Mining"), a wholly owned subsidiary of
Shareholders are advised that Wescoal and Wescoal Mining have applied to the
North Gauteng High Court to set aside the application for the winding up of
Wescoal Mining. The relief was sought on the basis that the winding-up
application is an abuse of the process of court and that it is part of a
strategy devised by BSM Mining and its director, Simon Mdau, to embarrass
Wescoal and extort payment of a debt, which is disputed on bona fide and
reasonable grounds. The main points in Wescoal`s application are:
* The amount claimed is for R 84 146;
* The debt claimed by BSM Mining is disputed as BSM Mining has claimed VAT on
the Royalties, which it was not entitled to do, for the following reasons:
* VAT number appearing on BSM Mining`s invoice is not registered with
SARS and invalid;
* BSM Mining is not registered for VAT with SARS;
* The royalty determined in terms of the Royalty Agreement is fixed at
R2,46 per ton mined and does not allow for an additional 14% to be
* Wescoal Mining is not insolvent and has made a substantial operating profit
for the six months to 31 August 2011.
The above matter was placed on the urgent Court roll on 3 November 2011.
Regrettably the judge ruled that application is not urgent and that the matter
should take its normal course through the Court.
Wescoal has evidence that BSM Mining is acting in concert with Sutha Civils who
have jointly and severally embarked on a program since March 2011 to embarrass
and harass Wescoal and elicit shareholder concerns. This is evident from the
fact that the full application for the liquidation of Wescoal Mining (Pty) was
hand delivered, by an individual who wished to remain anonymous, to a local
business publication on Friday morning 28 October 2011 after only being lodged
with the North Gauteng High Court on the preceding Thursday afternoon. As of
Thursday 3 November 2011 the Court application on which the article was based,
had still not been served on Wescoal.
The board of Wescoal recognizes that the events since March 2011 have impacted
on investor confidence. Planned announcements over the next few weeks together
with the group results due on 24 November 2011 will go a long way in restoring
confidence in Wescoal and its shares.
Wescoal will still proceed with the application against BSM Mining through
normal court channels as Wescoal remains convinced that the allegations brought
by BSM Mining have no substance at all.
A full set of our court papers will be on our website www.wescoal.com later
4 November 2011
Date: 04/11/2011 07:05:33 Supplied by www.sharenet.co.za
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