Jindal Steel & Power Ltd. South African units earlier this month, filed for a local form of bankruptcy protection, known as business rescue for its business.
Business protection is a type of insurance that helps protect a business against possible financial losses when illness or death affects the owners or their employees. It is also, used to ensure that business owners repay loans in similar circumstances.
According to documents posted on one of its subsidiaries website, Jindal Africa, three units of the industrial powerhouse, namely, Jindal Mining SA, Jindal Africa Investments and Eastern Solid Fuels on June 12 filed notice of the voluntary proceedings.
Bloomberg reported that efforts to get comment from a spokes person for the company has been futile, as there was no immediate response to emails seeking comment.
Business-rescue practitioners for the three units have fixed a meeting with creditors for June 26. The company’s operations in South Africa include a coal mine. Its subsidiary Jindal Mining SA is focused on coal production at the Kiepersol mine while Jindal Africa has operations in Botswana, Mozambique, Namibia, Zambia, Tanzania and Madagascar.
What you should know about Jindal Steel & Power
Jindal Steel and Power Limited is an Indian steel and energy company based in New Delhi, India. With turnover of approximately $ 3.3 billion, JSPL is a part of about US$18 billion diversified Jindal Group conglomerate.
The third largest steel producer in India is controlled by billionaire Savitri Jindal’s family. The company’s business operations include manufacturing of sponge iron, mild steel, and cement. It also produces power, conducts mining operations for iron ore and coal, and explores for natural gas and oil.