Phoenix also sources electricity, water and certain other services from IFMSA.
Phoenix and Pan African will work closely with the IFMSA Business Rescue Practitioner to ensure that the operations and interests of Phoenix are safeguarded, which includes the services currently provided by IFMSA.
Despite the stringent cost cutting measures taken by IFMSA, its financial outlook is such that it is facing financial distress.
In July IFMSA lost more than 10% of its ferrochrome production because of load shedding and power trips.
While IFMSA was vindicated in court proceedings to lift these orders, the damage was done.
Such income is expected to cover ongoing costs, allowing IFMSA to continue in business during the period of the Business Rescue.
During the period of the Business Rescue, IFL will seek to sell its shares in IFMSA and Purity.