Johannesburg - Construction company Sea Kay Holdings [JSE:SKY]
and the National Housing Finance Corporation (NHFC) have signed a settlement agreement which entails the withdrawal by the NHFC of its liquidation applications, the company said on Thursday.
The NHFC in February this year served applications for liquidation on both Sea Kay and Sea Kay Engineering Services - a wholly owned subsidiary of Sea Kay - which related to an outstanding balance on a loan granted by the NHFC to Sea Kay Engineering.
The parties have agreed that Sea Kay will repay a significant portion of the outstanding amount on or before 31 January 2011, and will repay a further amount, with interest, over five years.
"This settlement is significant to Sea Kay as it provides certainty and will greatly assist in planning Sea Kay's financial recovery," the company said.
"Sea Kay wishes to acknowledge the efforts made by the NHFC, the National Department of Human Settlements and the Gauteng Department of Human Settlements to ensure that a settlement could be reached in the best interests of housing delivery in South Africa," it said.
"The directors reiterate that Sea Kay's expressed intentions to continue and improve on the partnership with Government in order to ensure effective, efficient, speedy and quality low-cost housing delivery in the country, still remains a top priority of the company," it said.
Shareholders were advised to continue to exercise caution when dealing in the company's securities until further notice.