Bank opposes firm's bid for business rescue
Embattled East London electronics company Yekani Manufacturing has opted for business rescue to stave off liquidation by Standard Bank, but the bank has moved to oppose the application.
A Daily Dispatch report says the company made the announcement in the Eastern Cape High Court (East London) yesterday, the return date of a winding-up application by Standard Bank which has been under way since late 2019.
Lawyers for Yekani and the bank agreed that the liquidation application be suspended ‘pending finalisation of the business rescue application’.
Previously, Yekani CEO Siphiwe Cele stated that the company was pursuing various investment and sales contracts to secure the plant and the jobs of 500 employees.
But yesterday, there were no details about the business rescue process – either in court or outside.
© Juta and Company (Pty) Ltd 2016
Article disclaimer: Juta expressly reserves the right, in its sole and absolute discretion, to alter or amend any criteria or information set out in this article without notice. Accordingly, any information, including journalistic articles, are not intended to constitute legal, financial, accounting, tax, investment, consulting or other professional advice or services. Before making any decision or taking any action based on the information contained in this article, which decision or action might affect your personal finances or business, you should consult a qualified professional advisor.