Rockwell Diamonds Inc provides an update to the interim liquidation orders brought by C-Rock Mining Limited against three subsidiaries of the company issued by a judge in Kimberley South Africa on March 23, 2017.
The interim orders, which have yet to be confirmed in a final hearing which will include adjudication of the merits of the application and which has not happened to date, include Rockwell Resources RSA (Pty) Ltd (Rockwell RSA), HC van Wyk Diamonds Ltd (HC van Wyk) and Saxendrift Mine (Pty) Ltd (Saxendrift).
Interim liquidators have been appointed by the Master of the High Court, in accordance with requisitions by the major creditors, but their powers have now been suspended in view of further filings by the Company regarding business rescue.
Accordingly, they all remain under the operating control of the company.
In that respect, the Company confirms that the Wouterspan plant is now in the ramp up stage after commissioning.
Last week, one of the diamonds recovered was a 60 carat stone which sold for USD $8 000 per carat.
The Company appeared before Judge CC Williams again on Wednesday, 26 April 2017 in the Kimberley High Court. The only issue at hand in the hearing was the application by the Company to bring the 22 June 2017 hearing date forward to as early as possible, in order to have the merits of the Company’s liquidation application rebuttals adjudicated.
These rebuttals were outlined in the Company’s press release of 12 April 2017.
Judge Williams made it clear that urgency was no longer a consideration, in view of the business rescue filings and that the hearing date remains 22 June 2017.
The business rescue hearings are currently scheduled for 12 May 2017.
While the judgement is not what the Company sought, Judge Williams reaffirmed the principle that business rescue suspends both the powers of the provisional liquidators and the liquidation process, effectively allowing the company’s subsidiaries to carry on business.
On this basis, there is no pressing practical need to bring the final hearing date in the liquidation proceedings forward.