SA firm pushes for Agribusdev liquidation over N$4m debt
OGONE TLHAGE
WINDHOEK
South African company AECI Mining and Chemicals has applied for the formal liquidation of the Agricultural Business Development Agency (Agribusdev) over its inability to settle debt to the tune of N$3.9 million.
AECI had granted Agribusdev credit for goods purchased on the basis that it would make full payments within 30 days, the company said in an affidavit.
Failure to make payment within 30 days would see it charged interest of 2% for amounts outstanding thereafter.
Motivating its reasons for Agribusdev’s liquidation, AECI said: “The first respondent [Agribusdev] is clearly unable to pay its debts and it is furthermore just and equitable for the first respondent to be liquidated.”
AECI and Agribusdev entered into an agreement that would see the agricultural agency cough up N$3.9 million, together with interest at a rate of 2% per month on the capital amount outstanding, calculated from 25 November 2019 to the date of final payment.
According to the affidavit, the Etunda irrigation project, Agribusdev and the Sikondo irrigation project are liable to pay AECI the amount of N$3.9 million, together with interest at a rate of 2% per month.
Agribusdev and the Sikondo irrigation project are further liable for a payment of N$439 892 together with interest at a rate of 2% per month.
The total balance outstanding in respect of all defendants amounted to N$4.4 million. Down payments of N$1.8 million were made by the defendants on 23 January 2020, leaving an outstanding balance of N$2.6 million with interest as agreed,” AECI said.
It was further agreed that Agribusdev would make monthly payments of N$5 000 until 30 June 2020, but the agency is now accused of breaching that agreement.
Personal liability
“Given the debt owed to [AECI], it would be reckless on the part of those managing the affairs of [Agribusdev] to continue with its business, and the directors and management of [Agribusdev] stand the risk to attract personal liability for reckless and/or fraudulent trading, given the continuation of [Agribusdev] under circumstances where it is bankrupted or unable to pay its debts,” AECI said.
Liquidation would also help pave the way for AECI as a creditor to determine what was owed by Agribusdev and what was owed by government regarding equipment support granted to it for the Sikondo and Etunda green schemes.
“It is also within the broad conspectus of the just and equitable ground for liquidation… that a liquidator can be appointed to properly investigate what appears to be rather the convoluted affairs of [Agribusdev],” the South African company said.
Cabinet has since directed that Agribusdev be dissolved while the green schemes be operated on a public-private partnership basis.
WINDHOEK
South African company AECI Mining and Chemicals has applied for the formal liquidation of the Agricultural Business Development Agency (Agribusdev) over its inability to settle debt to the tune of N$3.9 million.
AECI had granted Agribusdev credit for goods purchased on the basis that it would make full payments within 30 days, the company said in an affidavit.
Failure to make payment within 30 days would see it charged interest of 2% for amounts outstanding thereafter.
Motivating its reasons for Agribusdev’s liquidation, AECI said: “The first respondent [Agribusdev] is clearly unable to pay its debts and it is furthermore just and equitable for the first respondent to be liquidated.”
AECI and Agribusdev entered into an agreement that would see the agricultural agency cough up N$3.9 million, together with interest at a rate of 2% per month on the capital amount outstanding, calculated from 25 November 2019 to the date of final payment.
According to the affidavit, the Etunda irrigation project, Agribusdev and the Sikondo irrigation project are liable to pay AECI the amount of N$3.9 million, together with interest at a rate of 2% per month.
Agribusdev and the Sikondo irrigation project are further liable for a payment of N$439 892 together with interest at a rate of 2% per month.
The total balance outstanding in respect of all defendants amounted to N$4.4 million. Down payments of N$1.8 million were made by the defendants on 23 January 2020, leaving an outstanding balance of N$2.6 million with interest as agreed,” AECI said.
It was further agreed that Agribusdev would make monthly payments of N$5 000 until 30 June 2020, but the agency is now accused of breaching that agreement.
Personal liability
“Given the debt owed to [AECI], it would be reckless on the part of those managing the affairs of [Agribusdev] to continue with its business, and the directors and management of [Agribusdev] stand the risk to attract personal liability for reckless and/or fraudulent trading, given the continuation of [Agribusdev] under circumstances where it is bankrupted or unable to pay its debts,” AECI said.
Liquidation would also help pave the way for AECI as a creditor to determine what was owed by Agribusdev and what was owed by government regarding equipment support granted to it for the Sikondo and Etunda green schemes.
“It is also within the broad conspectus of the just and equitable ground for liquidation… that a liquidator can be appointed to properly investigate what appears to be rather the convoluted affairs of [Agribusdev],” the South African company said.
Cabinet has since directed that Agribusdev be dissolved while the green schemes be operated on a public-private partnership basis.
Comments
Namibian Sun
No comments have been left on this article