Interim interdict granted in Elizabeth Bay mine saga
The High Court last Friday prohibited Sperrgebiet Diamond Mining (SDM) from removing any of its assets, machinery or equipment - which it reportedly sold and wanted to transport to Zimbabwe - pending the outcome of a liquidation application for the Elizabeth Bay mine.
This after Lewcor Holdings approached the court on an urgent basis, claiming SDM is emptying the mine before the liquidation application is approved and millions are paid out to creditors.
However, SDM argued that the sale of the items is part of the company’s new strategy to make the mine profitable again and that it already sold the goods in June 2023, long before the liquidation application was submitted.
Judge Thomas Masuku granted an interim interdict prohibiting SDM from removing any assets that would fall under the control of liquidators if the application is granted.
Protecting its interests
Lewcor has a 17% share in the issued capital of SDM and claimed that that company has not operated the mine profitably for some time. This led to the cessation of all operations at the mine in April 2023. In February 2023, SDM recorded a loss of N$118 million.
According to Lewcor, it received information from a whistle-blower that SDM intended to remove machinery from the mine and transport it to Zimbabwe.
Lewcor's legal representative Raymond Heathcote argued that the machinery was critical to the running of a mine and stressed that if the court were to eventually grant the winding-up order, a liquidator would find an empty shell.
According to him, Lewcor is acting to protect its interests and those of other SDM creditors.
SDM's lawyer Ronel Lewies countered that the goods in question were only "surplus assets" - assets that are redundant, obsolete or are no longer used by SDM.
The company further denied the allegations that it acted with the intention to cheat its creditors by selling the relevant assets.
SDM claimed that a third party had apparently already paid for the items. However, Masuku ruled that there is little evidence to support this claim.
“Should this be true, the alleged purchaser is entitled to bring a justifying application before this court at the appropriate time. As things stand, this is a mere allegation without any independent proof," his ruling read.
This after Lewcor Holdings approached the court on an urgent basis, claiming SDM is emptying the mine before the liquidation application is approved and millions are paid out to creditors.
However, SDM argued that the sale of the items is part of the company’s new strategy to make the mine profitable again and that it already sold the goods in June 2023, long before the liquidation application was submitted.
Judge Thomas Masuku granted an interim interdict prohibiting SDM from removing any assets that would fall under the control of liquidators if the application is granted.
Protecting its interests
Lewcor has a 17% share in the issued capital of SDM and claimed that that company has not operated the mine profitably for some time. This led to the cessation of all operations at the mine in April 2023. In February 2023, SDM recorded a loss of N$118 million.
According to Lewcor, it received information from a whistle-blower that SDM intended to remove machinery from the mine and transport it to Zimbabwe.
Lewcor's legal representative Raymond Heathcote argued that the machinery was critical to the running of a mine and stressed that if the court were to eventually grant the winding-up order, a liquidator would find an empty shell.
According to him, Lewcor is acting to protect its interests and those of other SDM creditors.
SDM's lawyer Ronel Lewies countered that the goods in question were only "surplus assets" - assets that are redundant, obsolete or are no longer used by SDM.
The company further denied the allegations that it acted with the intention to cheat its creditors by selling the relevant assets.
SDM claimed that a third party had apparently already paid for the items. However, Masuku ruled that there is little evidence to support this claim.
“Should this be true, the alleged purchaser is entitled to bring a justifying application before this court at the appropriate time. As things stand, this is a mere allegation without any independent proof," his ruling read.
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