International Ferro Metals Publication of amended Business Rescue Plan
18 March 2016 - 6:00PM
UK Regulatory
TIDMIFL
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.
END
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