Edwafin liabilties top R228 million

2009-06-05 00:00

JOHANNESBURG — Liquidators of failed investment firm Edwafin have found the company’s coffers empty, with over R228 million worth of liabilities outstanding.

According to a report issued by the joint provisional liquidators, Edwafin owes debenture holders almost R200 million, while R1,5 million is owed to the South African Revenue Services as a prefe­rential creditor and R600 000 to staff who have not been paid since 31 March.

“Based on the current scenario, there is no prospect of a dividend,” read the report.

It also identified loan accounts of R10,6 million and redeemable preference shares of R16 million.

Some investors hold out hope that a UK derivative contract could be liquidated as a dividend to cre­ditors. However, the liquidators found that the UK company, which drew up the contract, has itself gone into liquidation.

Edwafin’s vehicle manufactu­ring subsidiary, Dynamic Motor Corporation, has also been found to be insolvent.

Liquidators are reviewing a transaction according to which another subsidiary, Rainbow Paints, has been sold. Should it be reversed, about R1 million will become available to the estate.

Edwafin previously took out professional indemnity cover of R20 million. The liquidators are investigating whether a claim can be pursued.

Debenture holder Mario Koppers said he is “unsurprised” by the liquidators’ findings, based on the recent dealings with the company. — Fin24.com.

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