18 March 2016
International
Ferro Metals Limited
(“IFL” or the
“Company”)
Publication of
Amended Business Rescue Plan
Further to the announcement released by the Company on
21 January 2016, IFL announces that
the Amended Business Rescue Plan (“Plan”) in respect of its South
African subsidiary, International Ferro Metals (SA) (Pty) Limited
(“IFMSA”) proposed by the Business Rescue Practitioner is now
available on the Company’s website. The Plan will be considered by
creditors at a meeting on 24 March
2016. At that meeting, the Business Rescue Practitioner will
seek approval of the Plan to implement a revised offer received
from Samancor Chrome Limited (“Samancor”).
Pursuant to IFMSA’s settlement with Rustenburg Platinum Mines,
Samancor reduced its aggregate offer price from ZAR720 million to ZAR520
million.
The amended Plan provides an illustration and estimate of the
potential distribution to creditors of IFMSA. The Plan assumes that
the proceeds derived by IFMSA from the proposed transaction will be
an amount of ZAR520 million. However,
it is no more than an example and is not binding on the Business
Rescue Practitioner. The illustration is subject to change
depending on the circumstances at the time the distribution is to
be made.
The principle terms of the offer from Samancor are as
follows:
· will only become legally binding once
approved by creditors at the creditors meeting;
· has offered an aggregate consideration
of ZAR520 million in three divisible
tranches:
- ZAR310 million for
the business and assets of IFMSA;
- ZAR140 million for
the IFMSA Mining Right and Beneficiation Plant; and
- ZAR70 million for
certain receivables of Sky Chrome and Sky Chrome’s equity for
ZAR1;
· is subject to a number of conditions
being satisfied before Samancor would be required to complete the
acquisition, including obtaining regulatory approvals and consents
of other parties to certain material contracts, which are usual for
transactions of this nature.
Based on the Plan’s distribution schedule, it is not likely that
IFL shareholders would receive any distribution from the conclusion
of the business rescue process.
Due to the continuing material uncertainties facing the Company,
the Company remains not in a position to publish its annual report
and accounts for the year ended 30 June
2015 and interim accounts to 31
December 2015 at this time.
Further announcements in relation to the Business Rescue process
will be released in due course.
- ENDS-
For further information please visit www.ifml.com
or contact:
International Ferro Metals Limited
Tel: +27 14 574 6302
Chris Jordaan, Chief Executive
Officer
Numis Securities
Limited
Tel: +44 (0) 20 7260 1000
James Black / John Prior / Paul
Gillam
About International Ferro Metals:
International Ferro Metals produces ferrochrome, the essential
ingredient in stainless steel, from its integrated chromite mine
and ferrochrome processing operations in South Africa.
International Ferro Metals is listed on the London Stock Exchange
under the symbol IFL.
Forward Looking Statements
This announcement contains certain forward looking statements
which by nature, contain risk and uncertainty because they relate
to future events and depend on circumstances that occur in the
future. There are a number of factors that could cause actual
results or developments to differ materially from those expressed
or implied by these forward looking statements.