A court in Botswana reversed a recent decision by the High Court to end the provisional liquidation of Tati Nickel Mining Co. Pty. Ltd., Reuters reported May 23.
Botswana's Court of Appeal noted that the previous ruling did not consider the move's impact on creditors as the insolvent company has no income stream to service its debts.
"It is obvious that in reaching its decision, the High Court had no regard to the interest of the creditors of the company," the judgment said. "This notwithstanding all signals that the provisional liquidator was acting in the best interest of the creditors."
Tati, a unit of liquidated BCL Mine Ltd., has been under provisional liquidation since October 2016, which was extended twice on liquidator Nigel Dixon-Warren's requests to pursue a deal with investors.
The High Court ruled to take the company out of liquidation in April following the lapse of the last extension.
Tati had incurred cumulative losses of 1.6 billion Botswana pula and owed its creditors 1 billion pula when it was placed under liquidation.
As of May 23, US$1 was equivalent to 9.97 Botswanan pula.
