JSE-listed mining and construction engineering and contracting company Murray & Roberts (M&R) expects a business rescue plan for its South African subsidiary Murray & Roberts Limited to be submitted for creditors’ approval at or before the end of March.
The group placed the subsidiary and its trading division OptiPower in business rescue, and voluntarily suspended trading in the group’s shares on November 22.
“The group’s core assets by value and earnings contributions are its underground mining businesses, which continue to operate as going concerns, delivering on their contractual obligations.
“These businesses have good prospects into the future, although their order books are being impacted by the business rescue of the subsidiary company,” M&R said in a trading statement.
The underground mining businesses include its indirect subsidiaries, namely Murray & Roberts Cementation, Cementation Asia Pacific, Cementation Canada and Terra Nova Technologies. These companies are not in any form of business rescue or administration, it noted.
After the appointment of the business rescue practitioners (BRPs) and, in anticipation of the submission of the business rescue plan, strong support has been obtained from the capital markets, in the form of post commencement funding (PCF) in the amount of R130-million, subject to signature and implementation of the relevant funding agreements.
R40-million of the PCF has already been received during December, the company said.
“These investors are well capitalised and have expressed their appreciation of M&R’s expertise as a provider of mining contracting services, which rivals the best in the world, and the importance of preserving this capability,” it added.
Additionally, R120-million of loan funding has been secured, the company said.
Meanwhile, the BRPs continue to engage with the subsidiary company’s creditors, as well as with the PCF providers.
“The group manages a portfolio of high-quality underground mining assets. The BRP’s and the group therefore remain confident about the prospects of a successful business rescue,” said M&R.
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