EC-Hold has been granted a provisional liquidation order.
The insolvent company announced last month that it would seek a liquidation order as it had exhausted all avenues to keep itself afloat.
The order was granted by the Witwatersrand High Court, which has called for all persons with a legitimate interest to put forward their reasons why the court should not order the final winding-up of EC-Hold on 18 January.
A copy of the order is to be sent to all known creditors of the company.
EC-Hold said last month that liabilities exceed its assets by R12 million and its ability to continue as a going concern had been possible only due to the subordination of a portion of parent MGX`s loan account and a working capital support letter from MGX, subject to various conditions.
Chairman Norman Webster said the company`s running costs continued to be funded by MGX, itself funded by its financiers who were thus indirectly funding EC-Hold, and that this could not continue.
If EC-Hold were to sell its remaining asset, a 70% stake in Barlow Communications, the costs of complying with JSE rules relating to the disposal would absorb a large part of the proceeds, making such a sale of little commercial benefit.
While MGX agreed to provide the company with the funds required to delist, the Securities Regulation Panel indicated that until its earlier ruling for a mandatory offer of 240c a share to certain EC-Hold shareholders was complied with or a court judgment was made that no need for the offer existed, it would not condone an offer to EC-Hold shareholders for a lesser amount.
Once the High Court has ordered the final winding-up of the company, the JSE will be approached to terminate the listing.
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