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The Industrial Development Corporation’s (IDC’s) deal to take shares from the Gupta family’s company Oakbay Resources & Energy instead of cash repayments, cannot be cancelled because that arrangement was made outside of the formal loan restructuring agreement, the high court heard on Friday. The IDC is asking the High Court in Johannesburg to validate its cancellation of a loan restructuring agreement it had entered into with the Guptas, and to order that R287.5m be repaid. In 2010 the state-owned company loaned the Guptas R250m to acquire Shiva Uranium. In 2014 the IDC converted R250m more in interest payments into Oakbay shares when R37.5m was still owing on the capital amount. Oakbay has since been delisted and an investigation into share price manipulation is ongoing. In court papers, the IDC said it was entitled to cancel the arrangement because Oakbay had breached clauses of the agreement, including one which required the company not to violate any applicable law. Yet its cont...

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