Key points
- Namibian Minerals’ subsidiaries are being wound up by liquidators, with little prospect of any dividend for unsecured creditors or shareholders.
- De Beers has concluded a deal for the Namibian Mark II mining tool and plant and equipment aboard the MV Ya Toivo.
- LL Mining Corporation BV is negotiating for the Namibian diamond concessions, the NamSSol mining tool, the Wirth drill, and equipment aboard the MV Kovambo, MV Zacharias, and MV Namibian Gem.
- Namibian’s board of directors, who were not consulted on the bidding process, intend to resign in the near future as the liquidation continues.
Namibian Minerals, as a result of its inability to finance its working capital requirements since November, 2002, advises that there is no prospect of Namibian and its subsidiaries resuming operations as a going concern. The asset-owning and operating companies in the group are being wound up and the liquidators are progressing the sale of the group’s companies and/or assets. There appears to be little prospect of any dividend accruing to the group’s unsecured creditors and shareholders.
During February, 2003, the liquidators of the various Namibian companies invited offers for the group’s assets. Neither Namibian, nor its board of directors, were consulted or included in this process.
Further, Namibian was not advised of the details of the bidding process. No details of the offers received by the liquidators were provided to the board. Namibian has approached the liquidators and requested details of the bidding process, bids considered and the basis upon which the successful bidders were determined. Such information has been refused.
Namibian has, however, been advised that two successful bidders have emerged, namely De Beers, in respect of the Namibian Mark II mining tool, and plant and equipment on board the MV Ya Toivo, and LL Mining Corporation BV, in respect of the Namibian diamond concessions, the NamSSol mining tool, the plant and equipment on board the MV Kovambo, the Wirth drill, and mining plant and equipment on board the MV Zacharias, as well as the MV Namibian Gem.
Both bids were subject to the conclusion of written agreements. The De Beers transaction has now been concluded. The liquidators and LLMC have now commenced negotiations with a view to finalizing the latter transaction.
Once the present negotiations are concluded and moneys are paid to the various provisional liquidators, normal winding-up procedures will follow. Given that the group’s assets are in the control of the various liquidators and that the board is unable to control the process in any way, the directors intend resigning in the near future. The liquidation process is continuing and will take some months to finalize.
