Construction company’s future uncertain

The future of Stedone, one of KwaZulu-Natal’s biggest construction firms, still hung in the balance after an attempt to have the company liquidated was adjourned in the Durban High Court yesterday.

The application was brought by business rescue practitioner Karl Gribnitz, who said in an e-mail handed to the court that he would resign from his position yesterday.

Gribnitz had to resign because he was recently provisionally sequestrated in the Pretoria High Court and therefore could not act as a business rescue practitioner. Another practitioner would probably be appointed and the company’s directors believed there was still a chance that the business could be saved.

In court papers, Gribnitz said he launched the liquidation application because the business rescue plan was being challenged by the company’s biggest creditor, the Industrial Development Corporation.

The corporation, which claims it is owed more than R200 million, brought a court application to have the approval of the rescue plan, which would see the company being taken over by Trini Trading, set aside. Yesterday Gribnitz’s advocate, Andrew Escott-Watson, asked that the matter be withdrawn as Trini Trading was still interested in the deal.

But Judge Yvonne Mbatha instead adjourned it.

In its application, the corporation argued that the business rescue plan “ignored significant claims and required creditors to abandon their security or majority portions of their claims”.

The corporation also said Gribnitz had created a “contrived foundation” for the rescue plan which included “exorbitant” remuneration for him.

In his affidavit, to support the liquidation application, Gribnitz said that because of the pending court action by the corporation, Trini Trading was no longer willing to be part of the rescue plan. He said he had no money to pay the 126 employees or continue work on contracts and the company had to be liquidated.

In an affidavit Trini Trading’s Frederik Lutzkie said the company was still willing to be part of the deal. He said Trini Trading would suffer prejudice if Stedone was liquidated.

The corporation said Gribnitz had no authority to bring the application. The application by the corporation to have the rescue plan set aside will be heard later this month. - The Mercury

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