Times Of Swaziland: WAY FORWARD MEET FOR SUN HOTELS CREDITORS, SHAREHOLDERS

WAY FORWARD MEET FOR SUN HOTELS CREDITORS, SHAREHOLDERS
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Mbongiseni Ndzimandze on 16/08/2022 09:33:00


MBABANE – The liquidator in the sale of the three hotels under Sun
International Management has called a fifth meeting of creditors, shareholders
and contributors.
The meeting, according to a notice issued by the liquidator, has been slated for
August 25, 2022 at 9:30am at Royal SwaziSpa Convention Centre, Ezulwini. During
the meeting, the liquidators Marisa Boxshall-Smith and Paul Mulindwa are
expected to deliver their joint report and also update the creditors,
shareholders and contributors. They will also appraise those present on the way
forward, following that the sale of the hotel has not gone through as the
purchaser, Canham Mining International (Pty) Ltd, has reportedly not paid as per
the Deed of Sale.
According to a legal expert, if the purchaser does not make any payment within
the stipulated time, the liquidators might find themselves having to re-open the
bids. The sale agreement between Canham Mining International (Pty) Ltd and
Manzane Estates Limited-Ezulwini Properties Limited in Liquidation was signed in
Matsapha and Sandton on May 24, 2022.
The agreement was for the sale of SwaziSpa Hotel and Casino, Lugogo Sun and
Ezulwini Sun, following the liquidation of five companies under Sun
International Management Limited.  It has been almost two and a half months
since the sale agreement was signed. This publication has it in good authority
that Canham Mining International (Pty) Ltd has not paid the seller, Manzane
Estates Limited-Ezulwini Properties Limited in Liquidation, the 10 per cent
deposit amounting to E78 260 157.10 and the purchase price in the sum of E782
601 571.
Deposit
According to Clause 4.2 of the Sale Agreement, Canham Mining International shall
pay the deposit of 10 per cent of the purchase price not later than May 26,
2022. The amount was to be paid into a bank account of SwaziSpa Holdings and its
subsidiaries in liquidation. Should the sale be cancelled as a result of a
breach by the purchaser, according to Clause 9.3, the parties agreed that 50 per
cent of the deposit amount paid, and interest accumulated on it, shall be
forfeited to the seller as a pre-estimation of damages. The clause further
states that the other 50 per cent, with the interest accumulated on it, would be
reimbursed to the purchaser within five days from the date of cancellation of
the agreement by the seller. The agreement further states that Canham Mining
International (Pty) Ltd shall, not later than 45 days from May 27, 2022, furnish
the conveyancers with an unconditional and irrevocable bank guarantee in favour
of SwaziSpa Holdings and its subsidiaries from a commercial bank registered in
Eswatini for payment of the balance as approved by the seller. Forty five days
from May 27, 2022 ends on Wednesday.
In Clause 9.5, the sale agreement states that payment of the purchase price
shall be paid to the seller upon registration of ownership of the property into
the name of the purchaser or before the purchaser should do so. A source in the
know confided in this publication that the sale of the hotels did not go through
as per the terms of the Deed of Sale. The source said the liquidators were
consulting with all the relevant stakeholders on a way forward. Among the
bidders for the purchase of the hotels were Eswatini National Provident Fund
(ENPF), Yeoman Properties, (PTY) Ltd, WZN Investments (Pty) Ltd and Africa Orbit
Holdings (Pty) Ltd.