A subsidiary of JSE-listed Sail (previously Chrometco), Black Chrome Mine (BCM) filed for business rescue on 9 June 2022. While two conditional binding offers were received for the assets of BCM, neither were deemed suitable given execution risk and low returns to concurrent creditors. The best outcome for affected persons was to restart the mining operations and generate cash for repayment of creditors. The restructuring of the company involved a pure trade out scenario together with an extensive operational restructuring which permitted the re-start of the underground mining operations. BCM exited business rescue on 13 December 2024.

Werksmans, led by Dr. Eric Levenstein – Director and Head of the Insolvency & Business Rescue practice area – was appointed as the legal advisors of BCM to assist with all legal implications pertaining to the business rescue process which was finally concluded on 13 December 2024 and this deal has been nominated as the 2024 Business Rescue Transaction of the Year by Dealmakers and valued at R534 million.

Werksmans' Erich Bell, a Director in the Tax practice area led all tax-related legal matters.

The present case involved certain Value-Added Tax ("VAT") and Mineral and Petroleum Resources Royalty ("MPRR") contraventions that were committed by BCM both before and after the business rescue commencement date. Werksmans assisted BCM with submitting a Voluntary Disclosure Programme ("VDP") application to the South African Revenue Service to regularise these tax contraventions. The VDP application required Werksmans to make detailed.