Machanik Properties ‘has over R16m shortfall’

2011-05-09 07:43

A liquidator’s report indicates that Wendy Machanik Properties (WMP) has a shortfall of more than R16 million, The Star reported on Monday.

The report, which estimates the shortfall from preliminary investigations, has been sent to estate agents who worked for the agency.

In the report, sent out by liquidator D&T Trust, estate agents, which are named as preferred creditors, have been told they will each be paid R12?000 in salaries owed to them. This does not include their commission from houses sold, which has been placed in a trust account and will be paid to them as concurrent creditors. Concurrent creditors are paid last, if there is any money left.

The publication reported that Machanik put her Johannesburg home up for sale at R12 million.

According to the report, WMP had encumbered assets (book debts owed to banks) of more than R21 million. Secured creditors are claiming R6 million and “preferent creditors” (including the SA Revenue Service and staff) are owed R5.5 million.

Concurrent creditors are claiming R26 million, which includes claims from Machanik herself under members’ loans and inter-company loans.

One agent complained about potentially not receiving commission, while Machanik could get money from her own company’s liquidation.

But liquidator Enver Motala, from SBT Trust, said concurrent creditors, particularly members’ loans, were paid last if there was anything “left in the pot”.

Agents must put in a claim for what they are owed and the court will decide how much would be given to each creditor.

Machanik, the company Machanik Property Holdings, and its chief financial officer, Bruce Bernstein, face charges that include fraud in connection with the alleged irregular transfers of R28 million.

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