200 COULD LOSE JOBS AS FIRM LIQUIDATED

 MBABANE – It is now a cause for concern! About 200 employees will be left jobless as another textile firm in Matsapha has been placed under liquidation by the High Court.

Liquidation is the process by which a company is brought to an end, and the assets and property of the company are redistributed.
SWM Manufacturing (Proprietary) Limited yesterday obtained an order to be placed under liquidation after its lawyer, Mayibongwe Mntungwa, of Robinson Bertram law firm, moved an urgent  application before Judge Titus Mlangeni.

This is the third company to be placed under liquidation within a space of two months. Some companies which were recently placed under liquidation due to financial crisis are; Spintex where 350 employees were left without jobs and Langa Bricks (35 employees left jobless).

In the application to be placed under liquidation, the management of SWM Manufacturing stated that the company was insolvent in terms of the Company Act and if it were to continue trading, it would not be able to pay its ongoing obligation to creditors.
According to the management, if the company was to continue trading, it might be deemed to be reckless trading.
The company is reported to have failed to pay its rental to the landlord.

The landlord had since advertised the sale in execution, which was scheduled to proceed tomorrow.
The management submitted that it also feared that should the landlord proceed with the sale in execution for the rental dues, it would be detrimental to the other creditors, more especially the employees.

“The purpose of this application is to equate all creditors and place them on the same footing,” averred the directors.
They pointed out that First World Limited paid salaries, wages and other expenses for November and December 2017.
“Your petitioner (SWM Manufacturing (Proprietary) Limited  has been unable to pay salaries for its employees and has relied on its sister company- First World Trade (PTY) Limited,” submitted the management of the company.

The company was registered and incorporated on December 12, 2013 with a share capital of 100 shares of E1. Its main business objective was to carry business of textile manufacturing in the Kingdom of Eswatini. Limbouris Arthur is the 100 per cent shareholder of the company. Its directors are Arthur and Shaun Neveling.

In its application, the directors averred that the company was now insolvent.
“The total assets of the company are to the value of more than E500 000 yet the sum due to its creditors is in excess of E1.8 million. The company’s liabilities exceed its assets, therefore, it is insolvent and to attempt to pay one creditor above another would be a deed of insolvency,” contended the management.

SWN Manufacturing informed the court that if it did not voluntarily surrender its estate into the hands of the Master of the High Court, there was a real likelihood that some creditors, who had instituted legal proceedings against it, would proceed to attach the company’s property, as some had done so.

Post your comment

Your name:

Your e-mail address:

Add your comments:

Please enter the code you see in the image:

Image:

Code: