Africa-Press – Eswatini. THE liquidator of Royal Swazi Sun has been called upon to bring proof of an offer to buy the three hotels under liquidation at a price of E1 billion.
This was after the liquidator appointed by the group of companies came up with the claim that she had received financing to the tune of E1 billion, which has already been deposited into a bank account.
This submission was made in a bid to demonstrate that the liquidator appointed by the company was progressing well with the liquidation process, and that she does not need a co-liquidator for its facilitation.
The liquidator further submitted that that the liquidated group of companies have raised financing to the tune of E280 million and another E934 million from a South African financier.
But this was taken with a pinch of salt by the Deputy Master of the High Court Lindelwa Magagula, who believes that these offers have only expressed the desire to purchase the property and apparently failed to provide proof to give confidence to creditors.
The apparent hesitation was expressed in court papers, where a battle over the appointment of a co-liquidator by the Master of the High Court is being challenged by the liquidating companies.
The office of the Master of the High Court insists that it is appropriate to appoint a co-liquidator for the whole process.
In her answering affidavit, Magagula, who represents the office of the Master, insists on the appointment of the co-liquidator because she feels this would complement the work of the liquidator appointed by Royal Swazi Sun and further fast-track the process. She insisted that the appointment of the co-liquidator has brought back life and direction to the liquidation process.
In the court papers which were filed at the High Court, Magagula revealed that following the uncertainty over the authenticity of the purchase offer an investigation conducted by the co-liquidator appointed by the Master of the High Court, Paul Mulindwa, and a demand for proof was subsequently made in order to bring confidence.
This was after the investigation discovered that the interested bidders had only showed their bank statements and either refused and or failed to file bank guarantees.
She submitted that the co-liquidator has, therefore, brought direction by putting strict terms to the bidders to file a bank guarantee by Friday so that a name could be presented to the creditors in the next meeting.
In her support of the appointment, Magagula informed the court that she was uncomfortable with the pace at which the creditors committee was conducting their affairs.
She explained that this was because it has taken them a long time to present a positive report.
“I am advised and verily believe that the creditors were of the belief that they had secured buyers, only to be made aware by the second respondent that the documents in their possession are just offers with no guarantee that the funds can be released to purchase the properties.
“The co-liquidators virtually met the creditors committee on April, 11, 2022, where this was discussed. Currently, the liquidators are working on trying to get the offers to prove commitment of funds for the sale.
“They are also working on getting timelines for the availability of these funds,” submitted Magagula.
In June the High Court gave the green light to the liquidation process of the Royal Swazi Sun group, and a liquidator was subsequently appointed. But the Master of the High Court felt there was a need for a further appointment of a co-liquidator, an action which is being challenged by the liquidating company and a determination of the matter is pending at the High Court.
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