11 October 2022|14 Rabiul Awwal 1444
The South Gauteng High Court in Johannesburg has placed Arnot OpCo into business rescue just months after the shuttered mine revived operations and supply of coal to Eskom.
In a judgment handed down on Monday, the Salungano Group – the 50% owner of Arnot – was granted its application to have the operation placed under supervision and business rescue proceedings in terms of the Companies Act.
Salungano said business operations of the mine will continue as usual, including the supply of coal into the Arnot power station.
“Shareholders are reminded that Arnot OpCo has been in financial distress for a prolonged period, and the option of business rescue is considered the most appropriate under the circumstances,” Salungano, formerly known as Wescoal, said in a statement.
“Salungano Group is of the firm belief that a business rescue plan could facilitate a successful turnaround of the business.”
Source NEWS 24