The effects of Covid-19 have led to five companies under the management of Sun International Limited being place under provisional liquidation. The companies include Swazi Spa holdings which was operating Swazi Spa Hotel & Casino, Lugogo Sun and Ezulwini Sun. These latest developments will see about 200 Emaswati being rendered jobless. The other affected companies are; Swaziland Spa Development Company Limited, Ezulwini Properties (Proprietary), Spa Financing Company Limited and Manzane Estates Limited. Judge Cyril Maphanga yesterday issued an interim order placing the companies under provisional liquidation in the hands of the Master of the High Court. This comes after Sun International made an urgent ex-parte application for the provisional liquidation of the 5 companies. When motivating the application, Sun International mentioned that for the past 14 months, the 5 companies have not been operating because of the effects of Covid-19. The court was also informed that the companies individually and jointly had reached the position where their liabilities exceed their assets. As of the end of May 2021, the companies do not have money to pay their creditor nor to maintain their operational assets. Sun International Director and Chief Executive Officer Anthony Leeming said Swazi Spa Holdings has fully utilised it’s overdraft facility and could not obtain additional funding from it’s shareholders. The group applied to the Labour Commissioner for the release of a E2 million bond for the security of wages and for the lay-off of staff members for the duration of the state of emergency. Leeming added that even after the restrictions were eased, the hotel could not operate because they relied on tourists from South Africa, Mozambique and Europe. Leeming argued that the winding up of operations will prevent the companies from incurring further debts in the course of ordinary business operations.
Sourced From: Times of Eswatini 15 June 2021
Jun 16 2021 1:37PM