Court throws out Numsa application against VR Laser auction | Fin24
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Court throws out Numsa application against VR Laser auction

Sep 18 2018 18:01
Sibongile Khumalo

The High Court in Johannesburg on Tuesday threw out an urgent application by the National Union of Metalworkers of SA (Numsa) to try and prevent the sale of assets of VR Laser Services.

Numsa, which had 146 members employed by the Gupta-linked firm wanted the court to set aside the business rescue plan for the company and the sale of its assets as a matter of urgency. 

The auction of VR Laser assets, which aimed at raising funds to pay off the troubled firm's creditors, is scheduled to take place on Thursday.

Judge Selemeng Mokose ruled that Numsa had failed to present a convincing argument to justify the urgency.

"I'm not swayed that there's urgency… the matter is struck off the roll for the lack of urgency," said Mokose. 

Numsa also wanted a creditors’ meeting to be convened to vote on the adoption of an amended business rescue plan.

The application also named the Bank of Baroda and the SA Revenue Service (SARS) as respondents.

VR Laser specialised on steel plate processing and specialised fabrication. Its financial woes intensified when an offer from Blain Capital Solutions to inject R11.7m fell through, leaving the firm unable to pay employees and creditors.

This year, Denel terminated its dealings with the firm, as pressure mounted against Gupta-linked firms and allegations of their involvement in state capture.

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