FILE image. Billionaire publisher Atul Gupta briefs the media outside the Randburg Magistrate's court in Johannesburg on 27 September 2010.
JOHANNESBURG – The Industrial Development Corporation (IDC) has stated that it is in the process of recovering money from Oakbay Resources.
The agency says the delisting of the Gupta-owned company does not mean that it’s now worthless.
The IDC gave Oakbay a R250-million loan and the company has been repaying the loan.
The company also has 3% holding in Oakbay in the form of shares. It says it hopes that it will still be able to make some money from that stake.
Despite the drop in the value of the company after it delisted, the IDC is confident that it will recover the money.
Geoffrey Qhena, IDC CEO, says that the company has not given a time frame for the repayment but these are the procedural steps that need to be taken to prevent the IDC from losing any value.
‘The engagement with them is on how we, in this delisted environment, ensure the value that we have with them. So (in) that process we have involved our board to ensure that we recover our money as soon as possible.’
‘We are saying now that because the asset has been delisted, it does not mean that (because) it is delisted it is worth zero.’