Liquidation for five companies

MBABANE- The High Court has issued a final order for the liquidation of five companies under Sun International Management Limited.

Liquidation means that the business is not able to pay its debts. It further implies that the business will cease to operate ( generally as a result of financial problems).

The court had previously issued an interim order placing the companies under provisional liquidation. Judge Cyril Maphanga yesterday issued a final order for liquidation of the companies.

The affected companies include Swazi Spa Holdings which was operating SwaziSpa Hotel and Casino, Lugogo Sun and the Ezulwini Sun.

The latest development will see hundreds of emaSwati being rendered jobless.

The other affected companies are Swaziland Spa Development Company Limited, Ezulwini Properties ( Proprietary) Spa Financing Company Limited, Manzane Estates Limited, which have also been affected.

COMPANIES

The court appointed lawyer Marisa Boxshall Smith as the provisional liquidator of the five companies inclusive, with all powers, direct and ancillary to the joint winding up of the companies. Other respondents in the matter are the master of the High Court and the attorney general.

The order by the court comes after Sun International Management moved an urgent ex parte application for the provisional liquidation of the five companies.

In motivating its application the court was informed that the respondents ( five companies) had for the past approximately 14 months not been operating their main businesses namely, the proprietors of hotels and restaurants, the properties of recreation and entertainment facilities, provision of conference facilities, accommodation for meetings and gatherings and the carrying on of business of gambling, casino games and betting.

The court was further informed that the respondents individually and jointly had reached the position where their liabilities exceeded their assets and they were unable to pay their debts,

It was also submitted on behalf of the respondents that the above scenario had further deteriorated to the point that, as at the end of May 2021, the respondents, individually and collectively, had no monies whatsoever to pay any creditors, repay loans, raise funds or pay their staff.

“In particular, these respondents currently have no monies to maintain their operating assets and properties and secure same against any threats, such as theft and vandalism,” submitted the respondents’ lawyer.

AFFIDAVIT

In his founding affidavit Anthony Michael Leeming, the director and chief executive of the applicant ( Sun International Management Limited) informed the court that subsequent to the announcement by the prime minister of the nationwide lockdown and up to date; SwaziSpa Holdings Limited closed all its resort operations. He said this was in line with the government regulations for the COVID- 19 outbreak

Leemeng submitted that SwaziSpa Holdings Limited fully utilised its overdraft facility with no arrangement made for an additional facility from the financial institutions and could not obtain additional funding from its shareholders.

“Furthermore, the Group incurred loss before tax of E35.90 million as at September 30, 2020.

The Group further applied to the Labour Commissioner for the release of E2million bond for the security of wages, as well as for lay offs of staff members for the duration of the National Emergency,” submitted Leeming

The applicant was represented by Musa Sibandze.