According to a report sent out in January 2026 to creditors and other interested parties by the joint business rescue practitioners Refilwe Ndlovu and Johan du Toit, an optimistic view has been given that there is a possibility that Cast Products South Africa could be operational again by the end of March 2026, past the publishing date of Castings SA.

The report gives no clue or indication as to who the potential investor is. There are speculation and rumours in the market place but no announcement has been made or an indication of when this will happen.

Post commencement funding (PCF)
In the report the joint business rescue practitioners state that and we quote: “The Practitioners have been in talks with the potential purchaser in order to raise PCF to aid with the continued trading of the Company whilst the parties continue to finalise the terms of the offer.”

“The potential purchaser is considering advancing R60 million of PCF to pay the critical operational expenses of the Company until March 2026, which is when the sale process is likely to be concluded.

“The parties are considering the PCF request as part of the overall sales offer to the Company and would require security for the PCF in the event that the sales process does not conclude. The PCF funding is required to pay all arrear debt of the Company as of date of this report.”

“As at date of this report, the PCF request had not been approved.”

“The Company is also at an advanced stage of finalising the new investors programme with the potential purchaser to recapitalise the business and invest in upgrading the plant to allow for the business to operate more efficiently and ensure the long-term sustainability of the Company.”

“The Company has started to prepare for the revamp and upgrade programme, based on the new investors programme. The months of December 2025 and January 2026 have been used to clear all unused products and patterns in the foundries. All personnel have been allocated to the clearing and revamp project to ensure when funding becomes available, that the foundries can start operations and implement the revamp and upgrade programme.”

“The foundries did not produce any products in the month of December 2025 and January 2026 due to the aforesaid clean up. The Practitioners believe the implementation of the new investors programme will start on the 1 March 2026, subject to finalisation of all agreements and approvals of the new investors programme.”

“Without the proof of clearing and cleaning the factories, the revamp and upgrade programme cannot be implemented. This programme has been implemented for the first time in the last 10 years to ensure the upgrade programme can be effectively implemented.”

“The Practitioners engaged employees of the Company in terms of which the employees were advised that the Company has interested parties to co-invest with the IDC in CPSA. The negotiations and approvals are in process, and the parties are committed to finalise all, relevant approvals and documentation before the end of March 2026. However, the new investors programme is subject to several board and committee approval of all parties involved in the project.”

Sale process
“The Practitioners are implementing phase three of the Plan being a sale process for the business and/or assets of the Company.”

“On 12 December 2025, a potential purchaser submitted a final offer which contemplated a hybrid structure which included inter alia the acquisition of a majority equity stake or the conversion of existing loans into equity.”

“The terms of the final offer are being discussed by the Practitioners, the potential purchaser and the IDC as the security holder. These discussions were initially projected to be finalised at the end of January 2026 but are likely to be finalised by the end of February 2026. A term sheet is being prepared.”

“The Practitioners remain optimistic that the company will service the orders from Transnet whilst engaging the interested parties regarding their offers for the business and/or assets of CPSA.”

Creditors are encouraged to direct any queries to BRCREDITORS@castproducts.co.za.