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Johannesburg - Independent business rescue practitioners who will probe SuraPure Drinks Company Ltd will also likely aim to unfreeze the firm's bank account.
The affairs of SuraPure will be investigated by independent business rescue practitioners, part of whose mandate will be to see if there is any way the business can be saved.
The business rescue practitioners are likely to be appointed on Wednesday.
Kyle Torrington of Schindler Attorneys, acting for SuraPure in this matter, said: “Independent business rescue practitioners are better positioned to investigate the affairs of the company in light of the allegations levelled against it, with a view to engaging the various role players, and seeking to save the business.”
In light of this development, SuraPure’s urgent application on April 8 for an interdict against FNB, which has frozen the company’s account, was postponed sine die, i.e. without assigning a specific date to resume proceedings.
It is a possibility that one of the aims of the business rescue practitioners will be to unfreeze the account, but it will remain frozen for the present.
Interest of the customers
FNB legal spokesperson Shaun Chelin told Fin24 that the bank believes it acted correctly in placing a hold on the account.
"We are confident that we have acted in the best interests of our customers.
"We are assisting the South African Reserve Bank appointed Inspector to urgently address this matter and bring it to finality."
What is business rescue?
Business rescue is a process which allows South African companies, that are financially distressed or that trade in insolvent circumstances, an opportunity to reorganise and restructure.
It falls under chapter 6 of the Companies Act No. 71 of 2008.
When under business rescue, a company is protected against legal proceedings, but creditors have rights which enable them to play an active role in the process.
- Fin24
The affairs of SuraPure will be investigated by independent business rescue practitioners, part of whose mandate will be to see if there is any way the business can be saved.
The business rescue practitioners are likely to be appointed on Wednesday.
Kyle Torrington of Schindler Attorneys, acting for SuraPure in this matter, said: “Independent business rescue practitioners are better positioned to investigate the affairs of the company in light of the allegations levelled against it, with a view to engaging the various role players, and seeking to save the business.”
In light of this development, SuraPure’s urgent application on April 8 for an interdict against FNB, which has frozen the company’s account, was postponed sine die, i.e. without assigning a specific date to resume proceedings.
It is a possibility that one of the aims of the business rescue practitioners will be to unfreeze the account, but it will remain frozen for the present.
Interest of the customers
FNB legal spokesperson Shaun Chelin told Fin24 that the bank believes it acted correctly in placing a hold on the account.
"We are confident that we have acted in the best interests of our customers.
"We are assisting the South African Reserve Bank appointed Inspector to urgently address this matter and bring it to finality."
What is business rescue?
Business rescue is a process which allows South African companies, that are financially distressed or that trade in insolvent circumstances, an opportunity to reorganise and restructure.
It falls under chapter 6 of the Companies Act No. 71 of 2008.
When under business rescue, a company is protected against legal proceedings, but creditors have rights which enable them to play an active role in the process.
- Fin24
