Johannesburg – On Thursday the Cape High Court granted Investec’s application for the provisional liquidation of a number of Pinnacle Point Group [JSE:PNG] subsidiaries, some involving golf estates.
The provisional liquidation order does not however affect the business rescue recently granted to the Pinnacle Point Group in terms of the new Companies Act.
On Thursday Investec [JSE:INL] Group risk manager Ciaran Whelan told Sake24 that the application had been made since attempts to reach settlement over the R85m Pinnacle Point owed Investec had been unsuccessful.
Earlier this year Investec had submitted an application for the liquidation of Pinnacle Point Resorts, Pinnacle Point Investments, Festival Bay Trading and Clarence Golf and Trout Estate. It had held the application over after Pinnacle Point had announced that it had buyers for some of the golf developments.
Whelan said nothing had come of these plans.
Among the properties affected by the provisional liquidation are the golf estate development in Mossel Bay along the Garden Route and the Clarens Gold and Trout Estate in the Free State. The Mossel Bay development includes the company’s showpiece golf course and some 150 unsold stands. The Clarens development also includes the golf course and an unknown number of unsold stands.
Pinnacle Point recently became the first listed company for which a business rescue in terms of the new Companies Act was approved. The company is listed on the AltX. The business rescue application was submitted by Cape Point Vineyards as a Pinnacle Point shareholder.
Sybrand van der Spuy, the owner of Cape Point Vineyards, said the business rescue related only to the Pinnacle Point Group and the provisional liquidation of the companies mentioned above did not affect it. He said when he had brought the application for a business rescue his premise had been that those companies were insolvent and could not be rescued.
He said his company’s only hope was focused on the Lagos Keys project in Nigeria and other smaller assets that did not have bank exposure.
Sake24 has also confidentially learned that business rescue applications have been submitted for those companies under provisional liquidation. The hearing has been set down for September.
Golf estates have been hard-hit by the economic downturn, with sales of new stands drying up overnight. Several such developments have gone to the wall over the past year, including the Highland Gate Golf and Trout Estate in Dullstroom, to which Investec had exposure as well.