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Johannesburg - Property development group Pinnacle Point Group [JSE:PNG] on Thursday sought to provide clarity on the Investec [JSE:INL] application to liquidate some of its subsidiaries.
Pinnacle's subsidiaries included Festival Bay Trading, Pinnacle Point Resorts, and Clarens Golf and Trout Estate. These entities had project development funding facilities with Investec. Investec also applied for the liquidation of one other subsidiary that signed as co-principal debtor and surety for the three facilities.
Pinnacle emphasised that the action was not against the group per se.
"Shareholders are reminded that the company signed an agreement for the sale of the business and assets of PPR (Pinnacle Point Resorts), subject to conditions precedent being met. (The) sale provides for the full repayment of Investec's debt in the relevant subsidiaries," Pinnacle said, adding that was in the process of finalising an agreement to provide additional project funding and working capital for Investec.
Pinncle said it was in the process of negotiating with Investec to withdraw the applications and to continue supporting the company by way of reinstatement of the related secured property development facilities due to the group's improved prospects.
"It should be noted that no further funding is required from Investec for these developments as they are substantially complete and it is expected that Investec will be repaid in full in due course," it said.
Pinnacle's subsidiaries included Festival Bay Trading, Pinnacle Point Resorts, and Clarens Golf and Trout Estate. These entities had project development funding facilities with Investec. Investec also applied for the liquidation of one other subsidiary that signed as co-principal debtor and surety for the three facilities.
Pinnacle emphasised that the action was not against the group per se.
"Shareholders are reminded that the company signed an agreement for the sale of the business and assets of PPR (Pinnacle Point Resorts), subject to conditions precedent being met. (The) sale provides for the full repayment of Investec's debt in the relevant subsidiaries," Pinnacle said, adding that was in the process of finalising an agreement to provide additional project funding and working capital for Investec.
Pinncle said it was in the process of negotiating with Investec to withdraw the applications and to continue supporting the company by way of reinstatement of the related secured property development facilities due to the group's improved prospects.
"It should be noted that no further funding is required from Investec for these developments as they are substantially complete and it is expected that Investec will be repaid in full in due course," it said.
