OTCPK:KATFF - Post by User
Post by
Shindoescaon Apr 24, 2018 9:49am
97 Views
Post# 27931301
New Gecamines statement Glencore interest rate KCC too high
New Gecamines statement Glencore interest rate KCC too high
Reuters:
https://uk.investing.com/news/economic-indicators/congos-state-miner-seeks-to-dissolve-glencore-venture-over-debts-1141039
Financial Times
https://www.ft.com/content/68dd73e8-47a9-11e8-8ee8-cae73aab7ccb
Gecamines hit back on Tuesday, claiming that it had been forced to start legal action as “the majority shareholders” of KCC had failed for more than 10 years to address a multi billion dollar capital shortfall. “It appears that during this period, through a series of intra group financial and commercial agreements, the majority shareholders group implemented a policy that resulted in draining, to its own benefit, the treasury and wealth of the joint company,” it said. KCC is 75 per cent owned by Kananga and 25 per cent by Gecamines. Gecamines said KCC was now in debt to Glencore “for the amount of $9bn” at the end of 2017, with annual rates reaching 14 per cent and “far from the conditions under which the parent company borrows, to then lend to the joint company.” Glencore declined to comment further, referring to Monday’s statement issued by Katanga.