Steinhoff turns to ConCourt to stop liquidation bid
Steinhoff, the global retailer at the heart of SA’s biggest corporate fraud, will ask the Constitutional Court to set aside a ruling that an application to have it liquidated can be heard in SA.
Business Day notes a successful liquidation would have grave consequences for Steinhoff, which recently reached a R24bn settlement agreement with claimants in SA, Germany and the Netherlands.
Though arguments in the liquidation case are yet to be heard, Western Cape High Court Judge Hayley Slingers ruled that the lawsuit can take place in SA, even though Steinhoff is registered in the Netherlands.
Attempts by Steinhoff to appeal this decision at the SCA on Tuesday were rejected.
Steinhoff Advocate Arnold Subel told the High Court yesterday that Steinhoff would now urgently apply to the Constitutional Court to appeal the decision.
Businessman Bernard Mostert and Braam van Huyssteen have applied for Steinhoff’s liquidation.
The pair sold their footwear chain Tekkie Town to it for R1.8bn of Steinhoff shares that plummeted in value when accounting irregularities surfaced in 2017.
They allege Steinhoff knew the shares were worthless at the time of the purchase. They also argue that Steinhoff is technically insolvent and should be liquidated and the proceeds shared among those it defrauded.
Mostert says Steinhoff is trying to delay the matter so it can complete its R24n settlement process, before the liquidation case can be heard.
Article disclaimer: While we have made every effort to ensure the accuracy of this article, it is not intended to provide final legal advice as facts and situations will differ from case to case, and therefore specific legal advice should be sought with a lawyer.
