PETRA Diamonds is facing a winding-up petition from UK tax authorities against one of its subsidiaries over an unpaid corporation tax bill of about £5.65m.
His Majesty’s Revenue & Customs has filed the petition against Petra Diamonds UK Treasury (PDUK Treasury), a wholly owned indirect subsidiary. The petition has been advertised in the London Gazette and is due to be heard in court on October 14.
Petra said PDUK Treasury is a non-operating company and does not own or operate any of its mines. The petition therefore does not directly affect its mining operations.
However, Petra said it was assessing what the petition could mean for the group’s financing arrangements and ongoing refinancing talks.
The development comes a day after Petra launched a strategic review that could result in asset sales as it looks for ways to meet its short-term cash needs.
That review followed consultation with key stakeholders, including its first- and second-lien creditors.
It potentially brings Petra’s flagship Cullinan mine near Pretoria into play, while Finsch in the Northern Cape is being closed after business rescue practitioners concluded there was no way to save the operation.
Petra’s net debt stood at $322m at the end of June, up from $298m three months earlier. In July it secured a further R300m working-capital facility from a senior lender and deferred about $6m in cash interest until January 2027.
