BSG Resources, diamond tycoon Beny Steinmetz’s mining company, has entered administration, meaning control of the group has been given to practitioners responsible for trying to rescue the business.
Malcolm Cohen and William Callewaert of BDO are the court-appointed joint administrators, the advisory firm said Tuesday. They are tasked with operating in the creditors’ best interests, with a secondary duty to other stakeholders if there is any money left after all creditors are paid in full.
The administrators’ primary focus is to try to return BSGR to a state where it can pay off its debts. In the event the company becomes stable enough to operate on its own, the administration will end, and the company will return to its directors’ control, BDO explained.
BSGR faces separate court actions in both Paris and New York regarding its alleged connections to a bribery scandal over the rights to the Simandou iron-ore mining project (pictured) in Guinea, The Times reported Wednesday.
Image: Rio Tinto