Siltek`s doors remain closed

By Iain Scott, ITWeb group consulting editor

Johannesburg, 22 Oct 2001

Siltek has not reopened today, and there is uncertainty about when it will.

The group placed its main trading subsidiaries into liquidation last week after talks around the insolvent holding company`s capital restructuring plan failed.

CEO Dave Lello was out of the office this morning and unavailable for comment. Siltek has not released a formal statement about whether it will re-open soon.

The company says no one else is authorised to speak to the news media, but a staff member says it has not yet reopened.

A liquidator was appointed on Thursday, and it is understood that parties wanting to execute management buy-outs are in negotiations with the liquidator.

Lello said last week Siltek was still in talks with interested parties with the aim of recapitalising the group, and he was hoping that the various operations would be able to begin trading today.

The group has also been hit by a spate of resignations from its board, with financial director Dave Ashmore being the latest to leave, leaving Lello as the only executive director.

Ashmore, who joined the group from Absa, resigned with effect from Friday.

The group also announced the resignations last week of chairman Dudu Kunene, strategic business development director Jagdish Parekh and non-executive director GJ Royston.

Kunene and Royston left with effect from 10 October, and Parekh with effect from 12 October.