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Cape Town - Altx-listed microlender African Dawn has successfully applied to liquidate mushroom exporter Edulis, a division of rival Country Foods which is also listed on Altx.
Country Foods acting CEO James Anderson confirmed that the liquidation of Edulis, a business which exports mushrooms to the US and Europe, was a "fait accompli".
Earlier in 2008, Country Foods was suspended on the AltX while directors sought ways to recapitalise the cash-strapped group.
It would seem Afdawn had provided substantial financing to Edulis, which could no longer be serviced by Country Foods at punitive interest rates.
Asked why Country Foods shareholders had not been kept abreast of developments at Edulis, Anderson said a Stock Exchange News Service (Sens) announcement was due for release later on Friday.
Anderson only recently took the reins at Country Foods, following the sudden resignation of CEO and major shareholder Rob Casaletti.
Earlier in 2008, Fin24.com raised concerns around Country Foods' cash flow. Fin24.com noted the group had burnt through a substantial part of its cash, and that the R19m cash position at the beginning of financial 2008 had been reversed R3.7m into the red.
The group listed in September 2007, raising R30m in a pre-listing share placement that was heavily oversubscribed.
Anderson was still hopeful the remaining parts of Country Foods, which include fruit juices, mushrooms and deli products, could be salvaged. "We are still in negotiations, which - if successful - could refinance the group."
- Fin24.com