Wescoal Mining enters into voluntary business rescue

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JSE-listed Salungano Group’s subsidiary Wescoal Mining, which comprises the Khanyisa and Elandspruit mines, will begin with a voluntary business rescue process. On August 21, Salungano advised shareholders that a mining contractor of Wescoal Mining had taken legal steps to apply for the provisional winding-up of Wescoal Mining and that Wescoal Mining had filed its notice of opposition to the liquidation application.

JSE-listed Salungano Group’s subsidiary Wescoal Mining, which comprises the Khanyisa and Elandspruit mines, will begin with a voluntary business rescue process.

On August 21, Salungano advised shareholders that a mining contractor of Wescoal Mining had taken legal steps to apply for the provisional winding-up of Wescoal Mining and that Wescoal Mining had filed its notice of opposition to the liquidation application. Shareholders were also advised that Salungano, in its capacity as an affected party, had launched a court application to place Wescoal Mining in business rescue, which application was heard on August 22.

Subsequent to the aforementioned announcement, the respective applications were postponed from August 22 to August 24. On August 24, the parties to the liquidation application agreed to settle the matter and the terms of the settlement agreement have been made an order of the court. The liquidation application was withdrawn and business rescue process will now begin.

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