Boost for Pickvest class action suit
SEVERS FROM NIC GEORGIOU AS HE DOESN’T BELIEVE HE ACTS IN INVESTORS’ INTEREST I have significant information which may help the class action gain some momentum – Morkel Steyn.
The looming class action suit against Nic Georgiou and Orthotouch by investors in the failed R4.6 billion Pickvest property syndication schemes may receive a significant boost.
Morkel Steyn, Pickvest senior marketing executive and director of all the Highveld Syndication schemes, has “disassociated” from property magnate Nic Georgiou, Orthotouch and several other related individuals, as he doesn’t believe they act in investors’ best interest.
He’s now approached Highveld Syndication Action Group (HSAG), the driver of the class action application, to offer his help. “I am doing this for investors. I have been with Pickvest from the start as the national marketing director ...”
Steyn was, until recently, closely involved with the management of Pickvest’s business rescue plan. He hasn’t met the HSAG legal team, but the parties have been in contact.
Steyn said he closely monitored all developments within the Pickvest companies since the business rescue plan’s 2011 implementation. “Over a long period … I have tried to constructively address several internal matters with Georgiou and other key individuals, but these issues were not resolved. Someone needs to make a stand against possible maladministration and possible irregularities.” Steyn said it’s critical an investigation be conducted into the proposed listing of Capital Growth Fund (CGF), a company that’ll own many of the various scheme’s properties and will allow investors to convert their historical investments into shares in a listed company. This listing was one of the options in the original scheme of arrangement and will allow investors to get access to their capital by selling their shares in the open market. This option’s being aggressively marketed to investors, who currently receive monthly interest.
“I am really worried about this option, as investors will not receive more than 25% of the value of their original investments. The option is hugely beneficial for Georgiou as he would not have to continue paying interest to the investors who elect this option.”
He’s also concerned about the quality of management of the various properties housed in CGF, as many have deteriorated recently.
In a recent letter sent to shareholders, Orthotouch states the listing is well under way and anticipated to finalise in September 2017.
Steyn also wants to investigate various developments and agreements that triggered the scheme’s collapse, including the sales agreement of PIC Investment Holdings by Durant Botha to Rikus Myburgh.
Steyn also wants some answers on the R882 million dispute between Georgiou (Zelpy/Zephan Properties) and Bosman & Visser, which led to Georgiou cancelling the head lease and buyback agreements – the core of the financial product.