• On 21 September 2017, the Board of Directors made a decision to place the Company under voluntary business rescue. Business rescue practitioners have also been appointed. As soon as CIPC’s confirmation of filings have been completed, the practitioners will issue notifications and convene meetings with relevant affected parties in terms of the 2008 Companies Act.
  • Hernic has been notified by its key lender that Hernic is expected to be in breach of certain conditions of its credit facility by 1 April 2018, which breach the lender is not in a position to waive. If in breach, this facility must be repaid on 1 April 2018. Hernic does not expect to be in a position to repay a significant portion of facility by 1 April 2018.
  • Business rescue will bring about an opportunity to assess the options of the Company which will be done under a moratorium which suspends the repayment of the loan.
  • Under current stable market conditions and the availability of cash within (and accruing to) Hernic, it is anticipated that Hernic should be able to continue with the normal business operations for the foreseeable future. This is however subject to an assessment by the practitioners.
  • Relevant stakeholders will be kept informed of developments. In the meantime, operations will continue as usual.
  • For interim, all queries in this regard can be directed to communication@hernic.co.za