Georgiou faces bill of over R2bn

HIGHVELD SYNDICATION: ACTION GROUP SUBMITS DOCUMENTS TO EXPEDITE CLASS ACTION

Civil claims from thousands of investors in schemes after leave to appeal denied.

Advocate Louis Bolt, who represented investor Suraiya Noormahomed, said the judgment confirmed that the original buyback agreements remained valid.

“The court has now ordered Georgiou to honour the agreements.”

The claims are against Georgiou personally, as well as his company Zephan Properties and the Nic Georgiou Trust.

Moneyweb approached Georgiou for comment last week, but he failed to respond. Hans Klopper, the rescue practitioner, did not respond either to requests for comments either.

These parties have, however, stated that Bolt’s actions, as well as those of the Highveld Syndication Action Group (HSAG), which applied for a class action certification and the rescission of the Scheme of Arrangement, may lead to the liquidation of Zephan. This, in turn, would result in the termination of the monthly interest payments to investors, and Orthotouch would not be able to repay investors in terms of the scheme.

Bolt denied this view and said the liquidator would decide whether interest payments would continue or not.

However, such a scenario may be delayed if Georgiou elects to petition the Supreme Court of Appeal for permission to appeal against the judgment.

Zephan is owned by Georgiou and is also the underwriter of the Orthotouch scheme.

Orthotouch is dependent on Zephan as it is the operating company that generates the income to pay investors.