April and May 2020 Report
26 May 2020
To Whom It May Concern
April and May 2020 Report: Orthotouch and Zephan Properties (Pty) Ltd (In Business Rescue)
Business Rescue Proceedings
- Commencement of Business Rescue: 7 November 2019
- Appointment of Business Rescue Practitioner (BRP) – J du Toit: 14 November 2019
- First Meeting of Employees: 27 November 2019
- First Meeting of Creditors: 28 November 2019
- Business Rescue Plan filing date: 31 March 2020
- 2ND Creditors meeting: Date to be disclosed after the lockdown has been uplifted.
- All timelines have been met, accordingly the BRP filed the Business Rescue Plan on 31 March 2020.
- The BRP has completed his investigations and used all available and relevant investigative information to finalize the Business Rescue Plan.
- The Business Rescue Plan has been sent to all the affected parties and has been made available through public media. The investors / creditors were informed of the publication of the Business Rescue Plan.
- Notice / correspondence was sent out to all the affected parties together with the form of proxy and cession of shares documentation to be completed and returned to the BRP. (See attached copy of correspondence which was sent to all the affected parties – Annexure 1)
- The BRP is gathering all the votes and options and will disclose a date for the creditors meeting in due course as and when the Regulations in terms of the National Disaster Management act allows meetings/gatherings of large crowds.
- Three Attorneys endeavored upon litigation during Business Rescue with the Companies disregarding and contravening the Applicability of Chapter 6 of the Companies Act, regulating the Business Rescue process and the Moratorium against legal action as regulated by Section 133 of the Companies Act. The BRP has instructed an independent Attorney to act on behalf of the BRP, Orthotouch and Zephan to oppose the actions of such Attorneys and their clients.
The BRP is to engage with creditors / investors within 10 business days after the Business Rescue Plan has been published. This normally takes place as a 2nd creditors meeting but due to the COVID-19 outbreak and national state of disaster being declared, the BRP will be making alternative arrangements, in line with the Companies Act, to engage with the creditors / investors.
During Level 4 and Level 3 from 1 June 2020 meetings and gatherings are still prohibited until further notice for purposes of convening the 2nd creditors voting meeting in terms of the Companies Act.
The BRP will advise of the way forward in due course.
Du Toit Business Rescue Practice
Per: Jacques Du Toit (Senior Business Rescue Practitioner)