VIKING INVESTMENTS & ASSET MANAGEMENT LIMITED - CO
VIKING INVESTMENTS & ASSET MANAGEMENT LIMITED - COMPANY ANNOUNCEMENT
VIKING INVESTMENTS & ASSET MANAGEMENT LIMITED
(Registration No. 1998/04440/06)
Share code: VKG
ISIN Code: ZAE000015871
("Viking" or "the Company")
Company Announcement
Shareholders are referred to the announcement published on 31 July 2003 and the
JSE announcement published on 8 August 2003 regarding Viking"s suspension.
The problem relating to the opening inventory stock and accounting system
referred to therein was solved satisfactorily. However, problems arose with
Viking"s main creditor to the Metech transaction, namely Grenache Holdings
Limited ("Grenache").
Alternative debt finance was arranged but did not receive the support of the
Metech Management Group. Other settlement proposals were rejected by Grenache.
Grenache consequently forced a sale of it"s security through an auction to
settle loan due to them. The result of the above is that Grenache now owns 51%
of Metech together with attached liabilities.
However, a dispute has arisen as to the responsibility for the settlement of a
tax liability of $1,6 million, which arose from the $4,4 million extraordinary
gain on the revaluation of precious metals on the initial transaction date.
Viking Resources LLC has a flow through effect of taxes due from it"s subsidiary
ie Viking is liable for the tax, but receives the payment from the subsidiary.
Metech has refused to make payment of this liability. In the event that this
amount is not received, the liabilities of Viking will exceed it"s assets.
As it is unlikely that this dispute will be resolved in the near future, the
directors of Viking are considering various options including the possible
liquidation of the company.
Shareholders will be advised of any further developments.
9 January 2004
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