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

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For only R75 per month, you have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today.
Subscribe to News24
ZAR/USD
16.30
(+0.23)
ZAR/GBP
21.36
(+0.40)
ZAR/EUR
19.28
(+0.42)
ZAR/AUD
11.58
(+0.23)
ZAR/JPY
0.16
(+0.14)
Gold
1905.90
(-0.79)
Silver
24.69
(-0.97)
Platinum
867.00
(-1.86)
Brent Crude
42.06
(-3.35)
Palladium
2362.50
(-0.92)
All Share
54916.41
(-0.78)
Top 40
50436.45
(-0.92)
Financial 15
10306.09
(+1.65)
Industrial 25
74296.46
(-0.38)
Resource 10
53146.37
(-2.39)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Please select an option Oops! Something went wrong, please try again later.
Results
Yes, and I've gotten it.
25% - 47 votes
No, I did not.
50% - 94 votes
My landlord refused
25% - 46 votes
Vote