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24 August 2017 06:54 (South Africa)

Final liquidation order granted against Pamodzi Gold

The odd battle to save Pamodzi Gold ended today with the North Gauteng High Court in Pretoria issuing a final liquidation order. The company was caught between the Industrial Development Corporation (IDC) which wanted it liquidated and the China-Africa Development Fund (CADF) which wanted to implement a rescue plan. The IDC eventually won when the sale of three of the company’s four shafts were sold to Harmony. The inclusion of the shafts was a condition of the CADF’s R1,7 billion rescue package. The IDC favoured this sale, which cost Harmony R400 million because it was owed more than R200 million by the company. The company was small and never a significant player in the gold industry. Yet for the IDC, technically a government agency, to press for liquidation and, therefore, mass retrenchments against a rescue plan constitutes the controversial part of this sad story.

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