It is reported that Wescoal Holdings has succeeded in its urgent application to set aside attempts by Sutha Civils and BSM Mining to liquidate subsidiary Wescoal Mining.

It may be recalled that Wescoal brought the application in the North Gauteng High Court on November 3rd 2011 on the basis that the winding up application by BSM Mining was part of a strategy intended to embarrass Wescoal and extort payment of a debt.

Wescoal added it had evidence BSM was acting in concert with Sutha and the two had embarked on a program since March 2011 to harass Wescoal.

In a statement published on the JSE Stock Exchange News Service on December 15th 2011, Wescoal said that acting Judge Mr Hiemstra had interdicted Sutha and BSM from proceeding with the two winding up applications.

According to the Wescoal statement, Judge Mr Hiemstra said in his judgment that "The respondents have in concert embarked on a relentless campaign, not only by means of frivolous and unfounded litigation applications but also through the financial press and criminal charges, to coerce the applicants (Wescoal and Wescoal Mining) to pay the debts that are not due by them. This is a gross abuse of the processes of the Court and the provisions of the Companies At. The abuse is so outrageous that it calls for punitive cost orders."

(Sourced from www.miningmx.com)