The Johannesburg High Court has provisionally granted Square One Solutions' application for liquidation, and creditors now have two months to oppose the order.
Last Wednesday, the company told shareholders it was filing for liquidation in the South Gauteng High Court, in Johannesburg, because of its “precarious cash flow situation”. At the same time, it asked the JSE to suspend trade in its shares.
Kobus Swart, of Schwartz-North Inc Attorneys, who acts on behalf of the company in various legal matters, says the provisional liquidation order was granted yesterday.
He says the return date for when the liquidation will be made final is at the end of July. In the interim, creditors can oppose the liquidation.
Swart says a liquidator has yet to be appointed, but he hopes an appointment will be made shortly. Once the liquidator has been appointed, the parties will then determine if the company can be restructured.
Square One does have entities that are profitable, and these may continue operating, says Swart. However, he says, it does not make sense for the company to be listed as the JSE fees are onerous.
The listed entity, which is what has been placed under provisional liquidation, has a R1 million liability, says Swart.
Square One was founded in 1986 and listed in 2000. It has several operating entities, including wholly-owned Structured Infrastructure Solutions, Square One Technology Solutions, Square One Managed Services, Square One Group Operations, Square One Solutions and 51% of Square One Capital.
In the year to December, it incurred a net loss of R19 million. Its shares last traded at 10c before they were suspended last Wednesday at the company's request.
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