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High Court sanctions settlement between Miranda, creditors

High Court sanctions settlement between Miranda, creditors

Photo by Bloomberg

4th February 2015

By: Megan van Wyngaardt

Creamer Media Contributing Editor Online

  

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JOHANNESBURG (miningweekly.com) – Troubled coal miner Miranda Mineral Holdings on Wednesday said it had received an order from the  Pretoria High Court, sanctioning the settlement entered into between the company and its creditors.

In October last year, the company held a meeting in Pretoria to inform its creditors that it would not be able to meet all of its financial commitments.

Miranda sought to make a proposal to reach a settlement with its creditors. “All secured creditors will be paid 90c in the rand towards the company’s debt. All statutory creditors will be paid 95c in the rand towards the company’s debt,” it said in October.

The company’s troubles started when it pursued the acquisition of a significant stake in the Nkomati anthracite mine from Sentula Mining, which failed. “Many recapitalisation efforts made by the board also came to nothing,” it said in a statement.

The company had, as a result, incurred significant debt which it was unable to settle.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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