JOHANNESBURG (miningweekly.com) – Ferrochrome producer Hernic has been placed in business rescue, Mitsubishi Corporation said on Friday.

The business rescue of the Japanese subsidiary, Mitsubishi Corporation said in a release to Creamer Media’s Mining Weekly Online, is taking place under the Companies Act, following a comprehensive assessment of financial alternatives by Hernic's board of directors.

The aim of business rescue is to restructure the affairs of the company, which is described as being “financially distressed” after suffering market challenges.

The development, the corporation said, was not expected to have any material impact on the consolidated earnings of Hernic for the period ending March 2018.

The appointment of business rescue practitioners is expected to be formalised soon, said the corporation, which became a Hernic shareholder in March 2000.

The 60 000-employee Mitsubishi Corporation operates in 80 countries through a network of more than 500 group companies.