The proposed investor for PG Industries, Dewei Investments says it has received regulatory approvals and will proceed to pay off the building materials manufacturer’s shareholders and creditors this month.
The approvals confirm a bailout that has been uncertain after the Indian firm missed the original deadline to make payment in November last year.
“Scheme members are advised that Dewei Investments limited (Dewei) has now received the necessary regulatory approvals, including Exchange Control and Indigenisation,” said PGI in a statement.
“Dewei is now proceeding to conclude the transaction. It is anticipated that settlement to scheme members will be made in October 2017.”
Under a High Court sanctioned scheme, Dewei Investment agreed to buy the entire PG Industries’s share register at a cost of $500 000. It also agreed to provide working capital.
PGI’s shares were suspended from trading on the local bourse in 2013, with analysts asserting that the company was technically insolvent.
As of June 2015, PG Industries had paid secured creditors $4.3 million through property sales and debt swaps, while the balance of $965 082 was restructured to a three-year, 12 percent per annum long-term facility. –The Source
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