Only secured creditors will be paid out after Faritec Enterprise Solutions was placed under liquidation last year, leaving staff without final salaries.
JSE-listed Faritec placed its Enterprise Solutions division into liquidation last May, after running into cash flow problems. The listed company has not published any financial results since March.
Enterprise Solutions was the company's biggest revenue-spinner, as it accounted for R678 million of Faritec's revenue for the 2009 year to June. Faritec turned over R731 million during that year.
According to a report, by the joint liquidators, presented to creditors during a meeting held before the master of the Johannesburg High Court, Faritec Enterprise Solutions owes R272.3 million, but only has assets worth R25.2 million.
The liquidators' report, presented last Thursday, indicates that a dividend will only be paid to secured creditors. As a result, staff members are unlikely to be paid out their severance pay, or any outstanding salaries.
Faritec Enterprise Solutions' assets include a debtors' book worth R22 million, furniture worth R650 000 and loans worth R2.5 million.
However, the company owes secured creditors Comztek R18.4 million, Shoden Data Systems another R20.1 million, and landlords for two properties an additional R5 million. Collectively, this amount exceeds Faritec Enterprise Solutions' assets.
Faritec Enterprise Solutions also owes R64 million to trade creditors, and R122 million in inter-company loans. The liquidators did not specify which trade creditors these are, or which other Faritec entity is owed the money in terms of the inter-company loan.
According to the report presented during the creditors' meeting, the liquidators are not aware of any reasons why the directors - which include Faritec's last CEO Fanie van Rensburg - should be held liable.
The liquidators are in the process of collecting debt owed to Faritec Enterprise Solutions, and will sell office furniture and equipment in Cape Town and the company's 50% stake in E-Business Infrastructure Solutions, says the report.
The court last November appointed Leigh Roering, Norman Klein and Enver Motala as joint liquidators. The liquidators say the company failed because of the recession and cash flow problems.
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