Choice deal close to signing

By Nicola Mawson for Choice Technologies

Johannesburg, 03 Aug 2009

Despite expectations that a deal to save Choice Technologies from liquidation would be signed last week, that has not happened yet, confirms the liquidator.

Deon Botha, from Corporate Liquidators, said last week that he has been expecting a deal to be signed soon, but by Monday morning, nothing had been inked.

He expects a deal today or tomorrow, as the delay is around putting bridging finance into place to keep the company running between when the deal is signed and when the scheme of arrangements kicks in.

Black-owned Choice Technologies was put into liquidation last year following a R2.8 million dispute. JSE-listed Square One claims the money is owed to it by Choice and obtained a liquidation order through subsidiary Structured Infrastructure Solutions.

Botha had initially set a 1 July deadline, but had been putting off final liquidation in order to save staff jobs.

ITWeb understands there are two companies vying for Choice, which will be taken over by a scheme of arrangements that will see creditors at least being paid out something. Should liquidation go ahead, companies that are owed money will see very little of their claims being paid out, Botha has explained.

ConvergeNet was initially keen to take over Choice, but withdrew from the process last month, without citing reasons.