Gupta front quashes state-owned mining company’s bid to revive Optimum

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Gupta front quashes state-owned mining company’s bid to revive Optimum | City_Press

A massive R1 billion loan from a consortium led by the state-owned African Exploration Mining and Finance Corporation has been swept from the table and, instead, a new round of bidding to buy Optimum will take place in July.

Despite that, the business rescue practitioners have apparently been blindsided by Eskom and Bermuda-based Centaur Ventures’ new deal scrapping that finance. Last week, Centaur withdrew its case against Eskom – apparently, after the two creditors struck a deal.Their combined claims on Optimum comprise more than 75% of all claims, in money terms – in effect, making them able to vote down any rescue plan the business rescuers may come up with, including the AEMFC funding.

“In considering what dividends they may receive in such a regime, as opposed to the dividends that they may receive in a liquidation scenario ... if these major creditors find themselves worse off in a PCF [post-commencement financing] regime than in a liquidation scenario, they will not support a PCF regime.

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But the mine was bought with Eskom money why don’t they just take the mine and save the taxpayers money why’re we allowing Guptas to have a say in this after everything they put us through

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