- A1 Specialized Services ordered to pay for overdue accounts
- World No. 2 platinum producer flagged non-payment in 2013
Impala Platinum Holdings Ltd. was awarded $201 million by a U.S. court in a case against a recycling company for defaulting on payments due for processing metals, the world’s second-biggest producer of the commodity said.
If Impala recovers the amount due by A1 Specialized Services and Supplies Ltd. in full it will equal about two-thirds of the $300 million that the platinum company raised from shareholders in September, or about 8 percent of its $2.6 billion current market value. The windfall may come as the company is building new shafts to replace aging mines while battling a slump in commodity prices.
The U.S. District Court for the Eastern District of Pennsylvania last month confirmed a ruling by the London Court of International Arbitration stating that A1 should pay the amount, Impala said in a statement Wednesday. A1 accrued the accounts when Impala processed recycled platinum group metals on its behalf, a liability which the Johannesburg-based company flagged in February 2013.
A1 Chief Executive Officer Ashok Kumar didn’t immediately respond to an e-mailed request for comment.
“Every penny counts for Impala,” Edward Sterck, an analyst at BMO Capital Markets Ltd. in London, said by phone. “Some of the pressure is off the balance sheet but certainly this reward would help.”
Impala pared some losses after announcing the court award, closing 4.2 percent lower at 53.04 rand per share in Johannesburg after falling as much as 6.7 percent.