Suspended Visual back in business
LISTED property development firm Visual International Holdings, whose share trading on the JSE remains suspended, claims the company is no longer experiencing severe cash flow constraints, following the recent inflow of funds.
Visual International said on Friday that it was in the process of paying directors, the SA Revenue Service (Sars), auditors, secured lenders and other service providers.
The inflow of funds results from the sale of non-core assets and land.
The company’s auditors earlier this year issued a reportable irregularity to the Independent Regulatory Board for Auditors about their conclusion that Visual International had not complied with the Companies Act requirements in relation to financial distress and due to the late payment of PAYE.
Visual International said it would be addressing the previous reportable irregularity issue with its auditors as part of the audit process.
Expected inflow
“The board is of the view that, due to the actions taken, the recent and future expected inflow of funds, payments made and/or payment arrangements having been agreed with the majority to the company’s creditors, will serve to regularise this situation and bring creditors and secured creditors within terms,” it said.
The JSE suspended trading in Visual International’s shares on July 1, because of the failure of the company to submit its provisional financial statements within the threemonth period stipulated in the JSE’s listing requirements.
Visual International said the company expected the audit of its financial results for the year to February to be finalised in the first two weeks of next month.
In an update on its disposals, Visual International said the transfer of 7 831 square metres of land that comprised the first phase of the Stellendale Lifestyle Estate in Cape Town to Mergence Africa Property Fund had been completed and the proceeds of the disposal were received last week.
It previously disclosed it was selling the land for R11 million.
The company added that it had also sold the remaining seven houses it owned in Stellendale Village for R4m to the Charson Property Trust. It said about R3m of the proceeds would be used to settle bonds over the properties and the remaining R1m to substantially reduce the company’s liability to Sars.
Visual said on Friday it would be addressing the previous reportable irregularity issue.
The seven houses were valued at R5.025m in the company’s books and a loss of R1.025m was realised on disposal.
Visual International signed an agreement last month to sell serviced undeveloped land to UVest Housing Portfolio 2 for R15m. It said UVest was satisfied with its due diligence, but an institutional shareholder had asked for an extension of time until the end of this month for the due diligence.
Visual International said it expected this agreement to be implemented.
It said previously the proceeds would be used for the repayment of the R4.7m bond, to reduce the balance of most of the secured debt in the group and for working capital and development purposes.
“The conclusion of this agreement will ensure that Visual is mostly debt free, enabling it to commence with its main business as a property developer,” it said.