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The Johannesburg High Court has stifled the Industrial Development Corporation of SA's (IDC) attempt to place Kalagadi Manganese under business rescue for now. According to a statement by Kalagadi Manganese, the Court stuck IDC's urgent application off the roll on Friday.
"Due to the voluminous nature of the matter, the presiding judge advised the parties to approach the Divisional Judge President for a special hearing. Should the IDC persist with the matter, Kalagadi shall oppose it," said the company in a statement.
The state-owned development financier asked the Court to place Kalagadi Manganese under business rescue arguing that it needed urgent restructuring as the company was allegedly struggling to pay its creditors.
Although the IDC said Kalagadi failed to meet repayments for a $12 000 000 loan facility with the African Development Bank, the company it will publicly reveal the "real reasons" why the IDC wants to place it under business rescue when the time is right.
The IDC has a R3 billion exposure to in Kalagadi.
"Kalagadi believes that the IDC’s attempt to place the company under business rescue is thoroughly and comprehensively misguided. It is not informed by a desire to save the company, jobs, boosting the country foreign currency earnings or any other public interest consideration," read Kgalagadi's statement.
The company said its employees and creditors have been paid at the end of each month and its financial position continues to stabilize.
Compiled by Londiwe Buthelezi
