Creditors owed money by Zaptronix, which has filed for business rescue, will meet with the business rescue practitioner tomorrow.
The company lodged an application, under the new Companies Act, to go into business rescue with the Companies and Intellectual Property Commission last month. Zaptronix has been delisted from the bourse, after it did not lodge its results within the stipulated timeframe, failed to appoint a designated advisor, and did not have the "required audit committee composition".
Troubled Zaptronix last reported revenue for the six months to May 2012 of R14.1 million and a net loss of R2.845 million.
Paul Allan has been appointed as the business rescue practitioner. Tomorrow's meeting will include Allan giving a "limited opinion" as to whether the company should be rescued or liquidated, says a statement issued by the JSE.
The bourse issued the statement as Zaptronix does not have e-mail addresses for all its shareholders.
The practitioner will then give an overview of the business rescue process, how Zaptronix's subsidiaries will be valued, and what the options are for the subsidiaries. Creditors have the choice of electing a creditors committee.
Zaptronix provides solutions such as video surveillance, access control, central monitoring and systems management.
In July, it sent a "proposal of compromise and scheme of arrangement" to creditors. It indicates that, if approved, concurrent creditors will get 1% of what they are owed, and will also write off 5% of their claim and cede the balance to Zaptronix's controlling shareholder, I-to-I Technologies.
The alternative to the proposal was liquidation.
Zaptronix's dire financial situation was due to deteriorating market conditions, and the failure of the site risk business, I-to-I Technology Solutions, which it acquired from I-to-I Technologies.