adminTinashe Makichi Business Reporter
Chrome smelter MonaChrome is set to resume operations after its creditors accepted a $4,5 million bid from German investor NK Trading. MonaChrome judicial manager Mr Christopher Maswi told The Herald Business that creditors have accepted NK Trading’s proposal. However, the company will remain under judicial management until all the payments have been made.
“Upon approval by the creditors, NK Trading which is a shareholder in the company already, will be allowed to start operating Monachrome.
The company shall remain under judicial management until all the payments are made.
“In the event of default, NK Trading will be given at least 30 working days to rectify the resultant interest which will be pegged at five percent per annum,” said Mr Maswi.
“The MonaChrome assets will not be transferred until the whole amount is paid unless any transfer of assets results in proportional payments to the creditors.”
The amount will result in a payout ratio of 38 percent to secured creditors and 20 percent to the unsecured creditors.
Mr Maswi said the lifting of the ban on the export of chrome ore will go a long way in ensuring the viability of MonaChrome.
“The lifting of the raw export ban presents a huge opportunity to mine chrome, export and build working capital to fund plant restart,” said Mr Maswi.
The MonaChrome smelter produces an average of 36 tonnes of ferrochrome per day which converts to 12 600 tonnes of ferrochrome per annum.
Online Reporter