Implats wins $16m claim in US recycler default fraud case
JOHANNESBURG (miningweekly.com) – Platinum mining company Implats has won a $16-million claim for constructive fraudulent transfer during the insolvency in the US of a former recycler of autocatalyst materials, which had a long-standing association with Impala Refining Services (IRS).
Johannesburg Stock Exchange-listed Implats said on Tuesday that an Eastern District of Pennsylvania jury had rendered a verdict in its favour in the case involving the collection of $200-million-plus from A-1 Specialized Services and Equipment Company Inc, which until a few years ago had supplied platinum scrap to IRS on a regular basis.
As reported earlier by Mining Weekly Online, A-1 went into default after the global economic crash of 2008, leaving its refining contract with Implats to lapse.
The defendants in the case include the four A-1 shareholders, three of whom settled with Impala during the trial, prior to the verdict.
Earlier in the case, Implats successfully sought to wind down A-1’s business and to liquidate its assets, from which it expects to receive additional recovery.
Describing the legal process as “challenging and lengthy”, Implats said it was pleased to recover some of the money, which is alleged to have been unlawfully transferred out of A-1, ahead of the claims lodged by Implats.
“We feel vindicated by the outcome of the legal process,” Implats CFO Brenda Berlin said in a release to Creamer Media’s Mining Weekly Online.
Implats reported in May last year that a London Court of International Arbitration had issued a final award in Implats’ favour for the full amount claimed and that it would pursue all legal avenues available to it to collect the amount due.
Berlin outlined to Mining Weekly Online at the time that Implats took an initial impairment of R212-million against amounts owed and later impaired the full R1.2-billion remaining carrying value in the accounts after a default on agreed payment terms.
At the time, A-1 described itself on its website as a global leader in the recycling of platinum-group metals from salvaged catalytic converters, and an active marketer of platinum, palladium and rhodium to meet consumer needs.
Implats has five main operations in South Africa and Zimbabwe and produces approximately a quarter of the world's supply of primary platinum.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation