Strategy & Operations » Leadership & Management » Shaft Sinkers CFO & CEO leave as company defaults on loan

TWO top executives at Shaft Sinkers Holdings have quit the company as the mining group revealed it had defaulted on its loan with Standard Bank at the end of 2014, leaving it in breach of its banking agreements.

Shares in Shaft Sinkers, which provides non-core activities for major mining companies, plunged 40% on the news that chief executive officer Alon Davidov and chief financial officer Christopher Hall have stepped down with immediate effect.

Non-executive chairman Marius Heyns has been appointed executive chairman and group financial controller Hugo Jordaan has been appointed as acting CFO, the company said.

In a separate statement, the company said it is in discussions with Standard Bank about its banking arrangements, and is in talks with other finance providers to secure funds to repay a loan to Hillside and provide working capital.

“The company’s financial position remains weak and while talks in relation to alternative sources of finance are ongoing, the talks have yet to secure a binding commitment for the funds required,” it said.

It added there was little certainty over the timing and structure of any refinancing, and that it will make a further announcement in respect of the financial condition of the company as soon as practicable.