‘Former’ property magnate Nic Georgiou is facing provisional sequestration, after he failed to pay R12.9m to a former investor in the Highveld Syndication schemes.

A Moneyweb report notes the payment became due to the investor, Suriya Noormahomed, late last year, after the SCA dismissed Georgiou’s appeal against a High Court judgment, which had found that the conditions of the original investment contract remained valid – even though the HS companies were put into business rescue and later restructured in terms of a Section 155 Scheme of Arrangement.

This meant Georgiou had to repay Noormahomed R12.9m. However, Georgiou failed to pay the amount due.

Noormahomed brought the application for provisional sequestration, after Georgiou pleaded poverty when the Sheriff of the Court visited Georgiou’s residence in Johannesburg in January to seize assets to repay the amount.

According to the court papers, Georgiou declared to the sheriff he did not have the ‘money, moveable or disposable property’ which could be used or sold to repay the claim.

However, the sheriff’s report also states that Georgiou replied ‘yes’, when he was asked whether he owned any immovable property which may be sold to repay Noormahomed.

In her affidavit, Noormahomed says her attorneys conducted deed searches and found that despite Georgiou’s admission, he doesn’t seem to own any immovable properties in the country.

‘I submit that it is clear that Georgiou on his own admission, or at least inferentially, is concealing assets and that reasonable grounds, therefore, exist that a trustee will be able to unearth such assets which might then be attached, sold and the proceeds disposed of for distribution amongst creditors.’

Full Moneyweb report