Johannesburg: Rockwell Diamonds said its three subsidiaries – Rockwell Resources, HC van Wyk Diamonds and Saxendrift Mine – were successfully placed under business rescue by a court in Kimberley, South Africa as opposed to liquidation.

The immediate effect, it said, was that all legal proceedings against the subsidiaries were stayed, and the liquidation process was suspended.

Rockwell said the orders placing its subsidiaries in business rescue supported the company’s contention that there was a reasonable prospect of rescuing the subsidiaries and restoring them to long-term profitability.

Joint business rescue practitioners Peter van den Steen and Trevor Murgatroyd of Metis Strategic Advisors were appointed to oversee the affairs of the subsidiaries, work alongside dual-listed Rockwell’s management to right the businesses of the subsidiaries, and prepare a business rescue plan aimed at ensuring a return to commercial operations.

“The strategy remains the completion of the ramp-up of Wouterspan Mine to full production and to assess and where feasible implement measures to further increase production,” said Rockwell.

“A strategic review of all assets and opportunities will be conducted to assess possibilities of realizing short term value which may assist in expediting the repayment of creditors, and to ensure the businesses have sufficient capital to return to normal commercial operations where required.”

Rockwell would now pursue criminal and civil claims against C-Rock Mining Limited (CML) and certain individuals involved in the business of CML.

CML had claimed that it was owed monies relating to disputed invoices, reimbursement for tax penalties and other construction costs owed to it. Rockwell’s three subsidiaries disputed the claims.