South African mining giant Gencor has postponed its general shareholders meeting scheduled for Wednesday to allow lawyers representing claimants allegedly suffering from asbestos-related diseases more time to prepare their submissions to the company.
A statement issued by Gencor on Monday said the decision to reconvene the meeting at a later date was in line with Gencor’s stated policy of dealing with asbestos-related claims in a responsible, reasonable and prudent manner.
The general meeting was to have decided on a proposal that Gencor’s 46 percent shareholding in Impala Platinum be unbundled to Gencor shareholders.
Lawyers representing the claimants had threatened to bring an urgent application for an interdict to prevent the meeting taking place, and had informed Gencor that the application would be heard in the Johannesburg High Court on Tuesday.
”While a copy of a planned notice of motion was delivered to Gencor’s attorneys just before midnight on Friday night, the application was not lodged at the court on Monday as Gencor had been advised,” the statement read.
The late service was made in spite of the fact that the board’s intention to continue with the next phase of asset distribution to shareholders, which started in 1997, has been public knowledge for some time; and a formal announcement of Gencor’s intention to proceed with the unbundling of the Implats shares was made in June 2002, Gencor said.
Attorneys for the two sides have instead agreed on a timetable for the application’s hearing.
In terms of the agreement, the application will be lodged on Tuesday with lawyers for the claimants having until 14 October to supplement their papers.
The matter will be heard in the Johannesburg High court on November 18.
Gencor said their board would need to review their application carefully, and attorneys for the claimants needed additional time to finalise their documents.
”If Gencor has a liability, including any liability for claims in respect of asbestos-related diseases, it will be provided for.
On the basis of legal advice, including the advice of senior counsel, the directors believe Gencor is not liable under South African law for any of the claims, and have therefore not made provision for the amounts claimed,” Gencor said.
”These claims are for a total of R37-million. After the proposed unbundling of Implats shares, Gencor would retain an amount of approximately R409-million in cash. As has been previously stated, this would be used to defend the 37 summonses received and to cover any other potential liability or obligation which Gencor may have,” the company stated.
No date for the reconvened general meeting has yet been set, but Gencor said further announcements would be made to inform shareholders of developments. – Sapa