International Ferro Metals Publication of amended Business Rescue Plan

 
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: [phone] 
Chris Jordaan, Chief Executive Officer 
 
Numis Securities Limited                            Tel: [phone] 
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 
 

(END) Dow Jones Newswires

March 18, 2016 03:00 ET (07:00 GMT)