Court throws out Numsa application against VR Laser auction

VR Laser workers demand payment from the Gupta-associated company. (Photo: File, Thulani Mbele, Gallo Images)
VR Laser workers demand payment from the Gupta-associated company. (Photo: File, Thulani Mbele, Gallo Images)

The High Court in Johannesburg on Tuesday threw out an urgent application by the National Union of Metalworkers of SA (Numsa) to try and prevent the sale of assets of VR Laser Services.

Numsa, which had 146 members employed by the Gupta-linked firm wanted the court to set aside the business rescue plan for the company and the sale of its assets as a matter of urgency. 

The auction of VR Laser assets, which aimed at raising funds to pay off the troubled firm's creditors, is scheduled to take place on Thursday.

Judge Selemeng Mokose ruled that Numsa had failed to present a convincing argument to justify the urgency.

"I'm not swayed that there's urgency… the matter is struck off the roll for the lack of urgency," said Mokose. 

Numsa also wanted a creditors’ meeting to be convened to vote on the adoption of an amended business rescue plan.

The application also named the Bank of Baroda and the SA Revenue Service (SARS) as respondents.

VR Laser specialised on steel plate processing and specialised fabrication. Its financial woes intensified when an offer from Blain Capital Solutions to inject R11.7m fell through, leaving the firm unable to pay employees and creditors.

This year, Denel terminated its dealings with the firm, as pressure mounted against Gupta-linked firms and allegations of their involvement in state capture.

* Sign up to Fin24's top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER

ZAR/USD
17.03
(+0.31)
ZAR/GBP
21.88
(-0.22)
ZAR/EUR
19.89
(+0.06)
ZAR/AUD
12.06
(-0.11)
ZAR/JPY
0.16
(+0.27)
Gold
1881.63
(+1.06)
Silver
23.67
(+3.12)
Platinum
880.00
(+3.52)
Brent Crude
42.29
(0.00)
Palladium
2267.50
(+1.91)
All Share
54718.80
(+2.11)
Top 40
50578.66
(+2.08)
Financial 15
9932.20
(+5.65)
Industrial 25
73991.07
(+1.43)
Resource 10
54366.26
(+1.71)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Do you think it was a good idea for the government to approach the IMF for a $4.3 billion loan to fight Covid-19?
Please select an option Oops! Something went wrong, please try again later.
Results
Yes. We need the money.
11% - 1378 votes
It depends on how the funds are used.
73% - 8921 votes
No. We should have gotten the loan elsewhere.
16% - 1977 votes
Vote