Megatron announcement ‘null and void’ lawyers
Lawyers for a creditor owed €1.3m (R19.6m) by Ellies subsidiary Megatron claim Friday’s voluntary business rescue announcement released via Sens was ‘null and void’, says a BDlive report. Law firm Hogan Lovells – acting on behalf of creditor Ormazabal International Business – said its High Court application on 19 July to have Megatron placed into business rescue or under liquidation had priority.
On 4 August, Ellies issued a statement saying its board and that of its subsidiary Megatron had resolved to commence with voluntary business rescue proceedings. Hogan Lovells said its client made the court application after numerous attempts at obtaining repayment from Megatron had failed.
‘Ellies and Standard Bank are engaged in an on-going co-operative process aimed at an orderly settlement of any remaining indebtedness arising from the Megatron facility by restructuring the debt in a manner that the guarantors are confident can be accommodated from their ordinary cash flows and without interruption to the businesses as going concerns,’ Friday’s statement said.
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