[miningmx.com] — The former iconic JCI is seeking a further loan from Investec Bank to fund its near term cash requirements, including salaries and wages.
The company said on Thursday it requires cash urgently to meet its outstanding liabilities and ongoing operating costs.
“However, JCI does not currently have cash resources available to meet its obligations and has no operating business which will generate the required funding,” the group said.
“In addition, the major part of JCI’s present net asset value consists of illiquid assets (including a 62.7% investment in Boschendal) which will not provide the necessary cash flow in the short term,” the company stated.
“The board of directors of JCI believe that the only alternative in the circumstances is to obtain further loan funding from Investec in order to fund JCI’s near term cash requirements,” it added.
“Investec has agreed to provide R8m of loan funding to JCI on or about January 6 which will be secured by the group’s investment in Boschendal Limited and the group’s shareholder loans to Boschendal Limited.
The loan will bear interest at prime and has a term of three months from the date of advance.
“The JCI Board believe that the additional loan funding from Investec is in the best interests of the company and shareholders as a whole and that if it is not completed, JCI will not have sufficient cash to meet its financial obligations in the near term,” the company stated.
“As mentioned previously, JCI has no operational cash flows and does not have sufficient cash available for the group’s present requirements. However, the JCI board believes that its current financiers will extend the approximately R30m of additional funding which will be required in the short term based on JCI’s detailed cash budgets,” JCI added.
