Business rescue practitioners, who have been overseeing the producer and its activities since August, told Reuters this week that the move will keep the operation, which produces 10 million metric tons (mt) annually, from idling and will allow about 500 workers to keep their jobs.
If the pending sale is approved, the proceeds will be used to pay down some of Optimum’s debt, with Glencore paying the remainder. The deal will have a January 1 effective date.
Business rescue law in South Africa is akin to Chapter 11 bankruptcy outlines in the U.S. The protection Glencore is currently under gives it a temporary delay against those seeking to file claims against the company or its assets.
Proceedings in its case, according to Reuters, are due to be completed by the end of February.
