London-listed Afarak Group has advised that a claim has been settled between itself and South African financial services provider Absa Bank.
The dispute settlement also led to the District Court of Helsinki dismissing the claim in its entirety.
Afarak is a global vertically integrated producer of specialty alloys, with operations in South Africa, Turkey, Germany, London, Malta and Helsinki.
Absa was claiming R75-million, or €3.8-million, as well as interest and costs from Afarak, based on a corporate guarantee given by the company on behalf of then subsidiary Afarak Mogale.
The subsidiary entered into business rescue early in 2020 and had not been allowed to pay its debts during these proceedings.
Subsequently, Afarak Mogale concluded business rescue proceedings in August, by signing a share subscription agreement with ferrochrome producer Bright Minerals, in which Bright acquired all of the company’s shares and business for R300-million – which secured creditor Absa helped to negotiate.
Afarak Mogale, now Mogale Alloys, is based in Krugersdorp and comprises four furnaces capable of producing up to 550 000 t/y of ferrochrome.