WAY FORWARD MEET FOR SUN HOTELS CREDITORS, SHAREHOLDERS

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.

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