Salungano concludes standstill agreement with lenders
JSE-listed Salungano Group has reported that it has concluded a standstill agreement with its lenders, Nedbank and Standard Bank, on August 26.
The company explains that the lenders have agreed to stand still on their legal rights, provided Salungano complies with the repayment and other terms of the agreement.
Salungano says it has been in breach of its loan facilities since June 21, 2023, when it was unable to secure a refinancing agreement with its lenders.
As reported in October 2024, the outstanding balance on the revolving credit facility (RCF) was R396-million as at September 30, 2023, and the general banking facilities (GBF) limit was R90-million.
Salungano notes that the RCF balance has subsequently reduced to R153-million as at July 31, with the GBF facilities limit at R80-million.
The main terms of the standstill agreement provide for a monthly repayment of R20-million and a further repayment of R10-million at the end of each calendar quarter.
The company says the facilities are expected to be fully settled by about June 2026.
Meanwhile, Salungano has yet to publish its audited financial results for the year ended March 31, 2024, the interim results for the six months ended September 30, 2024, and the audited financial results for the year ended March 31 this year.
The company assures shareholders that it is progressing well with finalising its financial reporting and says an updated indicative timeline for the publication of the financial year 2024 and financial year 2025 financial results will be communicated as soon as practicable.
The company says it remains committed to compliance with the JSE listing requirements.
Salungano’s mining division comprises the Moabsvelden, Elandspruit, Vanggatfontein and Khanyisa coal mines, in Mpumalanga.
The company also holds a 50% interest in the Arnot mine.
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