WASHINGTON (dpa-AFX) - Glencore plc (GLCNF.PK, GLNCY.PK, GLEN.L) Monday referred to the announcement by Katanga Mining Limited regarding the recapitalisation process for Katanga's 75% operating subsidiary Kamoto Copper Co. in Democratic Republic of the Congo or DRC.
Katanga's announcement noted that DRC state-owned joint venture partner, La Générale des Carrières et des Mines or Gécamines, has commenced legal proceedings in the DRC to dissolve KCC following KCC's failure to address its capital deficiency, or, alternatively, if the Court provides KCC with a period of time within which to regularize the situation, to request the appointment of an expert to assess and report to the Court on KCC's financial position and recapitalisation plan.
Katanga said it believes that it has several options to remedy KCC's capital deficiency and avoid KCC's dissolution. Katanga will continue to attempt to engage in discussions with Gécamines and will take all other necessary steps to ensure the continuation of the operations of KCC and protect its rights under the law and under its joint venture agreement with Gécamines.
Further, Katanga said it is continuing to assess options for regularising the capital deficiency, including the conversion of a portion of existing intercompany debt owed by KCC to Katanga into equity or forgiving a portion of such debt.
If Katanga has taken the necessary steps to regularise KCC's capital deficiency and this is confirmed by KCC's statutory auditor on or before the day on which the court renders its judgment on the merits, then the DRC court cannot issue a dissolution order, it said.
Copyright RTT News/dpa-AFX