Following Explorer`s announcement yesterday that it intends to take revenue partner Mercantile Bank to court, Mercantile says it will take whatever action it deems appropriate to recoup money it believes it is owed.
Mercantile responded to Explorer`s JSE announcement that it intends to seek legal redress for breach of contractual obligations by dismissing the announcement as a smear campaign initiated by Explorer to undermine the stability of the bank.
The bank says Explorer has defaulted on its contractual obligations to Mercantile and Mercantile director Alan Greenstein says the bank will not hesitate to take direct and swift action to protect itself. He says this may take the form of pre-emptive action if necessary.
Meanwhile, Mercantile has sought and been awarded an interim Order of Attachment against an Explorer subsidiary.
Greenstein says Mercantile has taken this step in order to protect the bank from having any of its equipment attached if Explorer`s appeal against an eviction order does not succeed.
Mercantile claims that there are no further amounts due, owing or payable to Explorer, effectively formalising its stance of cutting Explorer off from any revenue derived from the 8 500 Explorer Visa credit cards.
Explorer CEO Aaron Stanger remains adamant in his stance that Mercantile has acted in an overtly hostile manner and says it has been Mercantile`s lack of support which has resulted in the present cash flow crisis in which it now finds itself.
New legal action sees an attempt by Mercantile attorneys to hold Explorer directors personally responsible for monies owing. Greenstein was unwilling to comment further on this legal action, saying the matter was between the two firms of attorneys.
However, he responded strongly against market rumours that Mercantile may itself be experiencing financial difficulty.
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Explorer to take Mercantile on in court
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