ORDER TO WIND UP FOUR PHARMACIES GRANTED

MBABANE – The High Court has granted an interim order for the winding up of four pharmacy businesses that filed applications for liquidation due to financial constraints.

The order granted last week, operating with interim and immediate effect and returnable on August 2, 2024, (Friday) calls upon all interested persons to show cause why an order set out in the terms set out hereunder should not be made final. The four pharmacies, which now want to cease operation, are Healthmed Pharmacy (PTY) Limited, Medex Pharmacy (PTY) Limited, Corner Plaza (PTY) Limited and Laboratory Services (PTY) Limited. All these pharmacies were under the director of David John Melvin. Liquidation is the process of bringing a business to an end and distributing its assets to claimants, which occurs when a company becomes insolvent.

Expenses

In motivating the different applications, the applicants stated that they (four pharmacies) were no longer able to pay their existing debts, unable to meet their day-to-day working expenses and trading in insolvent circumstances. He averred that it was, therefore, just and equitable to wind up each of the applicants as contemplated in Section 287 of the Companies Act of 2009. Section 287(e) provides that, a company may be wound up by the court if it appears to the court that it is just and equitable that the company should be wound up.

In the application to liquidate Medex Pharmacy, he brought it to the attention of the court that the company was formed and incorporated on February 10, 2012 and operations started around the same year. He submitted that over the past few years, the company had experienced financial difficulties. Melvin highlighted that the most recent statement of financial position was for May 2023, revealed inter alia that the total current and non-current assets amounted to E7 327 217. “ The applicant ( Medex Pharmacy)  has a debt owed to RGCO Limited in respect of stock sold and delivered to the applicant of the sum of E4 309 477. 96 and also in respect of a loan in the sum of E4 058 038.46,” submitted the deponent (Melvin).

Operations

Coming to Healthmed Pharmacy, Melvin stated that the company was registered and incorporated on May 5, 2014 and operations started around the same time. He said over the years, the company had experienced financial difficulties. He mentioned that the most recent financial position for May 2023, revealed inter alia that the current and non-current assets amounted to the sum of E1 680 142. He also  submitted that the company had a debt with RCGO (PTY) Limited   in respect of stock sold and delivered to the applicant  of the sum of E947 786.77 and also  in respect of a loan in the sum of E1 162 267.20.  In the application to liquidate Corner Plaza (PTY) Limited, Melvin made almost similar arguments that the company was now insolvent.

He submitted that the applicant (Corner Plaza (PTY) Limited) was registered on February 10, 2012 and operations started around the same time, however, over the years it has experienced financial difficulties.  He pointed out that the most recent statement of financial position for June 2023, revealed inter alia that the current assets amounted to E2 264 939. The applicant, according to Melvin  was further owing RGCO (PTY) Limited in respect of stock  sold and delivered to the applicant of the sum of E2 652 627.89  and also in respect of a loan in the sum of E3 246 261.07.

The applications are still pending at the High Court. Above is the table showing some of the monies owed by the applicants to RGCO as per the annexure in one of the applications.

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