Court ruling allows African Bank to reclaim R130m from businessman

The Johannesburg High Court has granted African Bank a final sequestration order against a businessman.

In the ruling, the judge found the businessman “hopelessly insolvent” and dismissed his last-minute attempt to delay the proceedings.

Acting Judge M M Antonie also said that the costs of the court case would form part of the amount African Bank could claim as part of the sequestration.

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This paves the way for African Bank to take legal possession of the businessman’s home and sell it to recoup what it is owed.

Before delivering judgment, the court dealt with the businessman’s attempt to postpone the final sequestration hearing.

Having fired his previous attorneys just before the matter was set to be heard, his new lawyers appeared in court having only been briefed the night before.

The new lawyer asked for more time to familiarise himself with the case, arguing that the consequences of sequestration would be “dire” for his client.

African Bank opposed the request, saying the matter had already been delayed and that Culverwell’s prospects of success were poor.

The court noted that Culverwell, who had been provisionally sequestrated in July, had “failed to furnish a full and satisfactory explanation” for seeking a postponement.

“To my mind, this has all the hallmarks of a delaying tactic which seeks to interfere with having the matter finalised… I do not regard the application for the extension of the rule as being bona fide.”

The judge said Culverwell had repeatedly changed attorneys and appeared to use the process to stall the case.

“One of the oldest tricks in the book is the practice of some legal practitioners, when the shoe pinches, to withdraw from the case or of clients to terminate the mandate in an attempt to compel the court to grant a postponement,” Antonie wrote.

The judge refused a request for further postponement and ordered that argument on the merits proceed immediately, after which the respondent’s counsel withdrew.

The case stems from a 2023 court order that held the businessman and his father jointly liable to Grindrod Bank for more than R96m, with interest and costs.

Since the order, no portion of the debt has been paid, and compounded interest over 42 months has pushed the total to over R130m.

This was despite the businessman having sold R79m worth of properties, which was money that would now form part of a liquidation process.

After Grindrod was taken over by African Bank, the debt was owed to African Bank.

The court found that the businessman’s liabilities far exceeded his assets, saying he had provided no evidence to prove otherwise.

Once sequestration was made final, trustees would be appointed to take control of the businessman’s estate and investigate his financial affairs.

Antonie found that sequestration would be to the advantage of creditors, noting that the businessman was a director of at least eight companies and involved in several business enterprises that could be investigated by trustees.

In addition, he owned at least two properties.

The judge also said that there may be additional assets that could be found during an insolvency process.

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