BARBERTON – This was revealed by Dwaine Koch, the chairman of the creditors’ committee. Koch held a meeting with workers at Thusong Community Centre in Louisville last Friday to explain to them what provisional liquidation entailed.
The meeting ended when workers who were permanently employed by Lily Mine at the time of the collapse on February 5, 2016, disrupted it.
Koch was requested to move out of the centre and reconvene the meeting outside, with mostly workers who were employed by contractors and resided in the community.
According to him, the provisional- liquidation application was being handled by well-known lawyer, Johan Grové. Koch said the reason for this was to ensure that the mines’ licences were not revoked.
He said it would allow a new owner who might buy these two entities out of provisional liquidation to continue operations without having to apply for new licences. He added that this would save time as applying for a new mining licence is costly and time consuming.
“We all have the same vision and that is to see both mines reopen as a matter of urgency so they can re-employ and contribute to the economy again.” Koch said several attempts by the business-rescue practitioner, Robert Devereux, to secure an investment have failed.
“The Lily Mine business-rescue plan has failed and the Barbrook plan was never approved because it contained so many mistakes and incorrect information. The most important of all, the social and labour plan and associated costs coupled with detailed project descriptions were left out, which will have enormous consequences,” he added.
Koch said as creditors they requested the business-rescue practitioner on many occasions to address their concerns and to compile a plan that is practicable.
He said following the failure of talks, the relationship of trust has completely broken between the creditors and the business-rescue practitioner.