Kingsgate Clothing and Clematis Trading filed the application, which is to be heard today, after the retailer’s business rescue practitioners apparently told the group’s concurrent creditors, which according to court papers also includes 11 other firms, that they would only receive 4 cents on the rand of an estimated R200 million owed to them.
He said Kingsgate Clothing and its associate companies were concurrent creditors in Edcon to the value of R24 million, while Clematis was owed approximately R18.5 million. “This would not only have the advantage of giving it an expectation for a recovery in time to come of the R24m, but it will also save the company and tens of thousands of jobs that go with it. It will also serve to preserve a 50-year-old customer for Kingsgate,” Vahed said.
Kingsgate’s attorneys, Pather and Pather Attorneys, wrote to Marsden and Schapiro asking if they had considered saving Edcon on the basis of a swop of debt to equity.The firm’s attorneys sent a further letter requesting that the meeting scheduled for today be postponed until June 29 and that all relevant financial information and documents be provided so that creditors could apply their minds.
In his answering affidavit, Schapiro said the creditors’ application was “littered with factual inaccuracies regarding the business rescue practitioners purported conduct, failure to produce documents and/or respond” to requests.
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