Nedbank to intervene in Shabangu case: Report

The High Court in Pretoria has granted Nedbank permission to intervene in an application by a company to have property mogul Roux Shabangu's business liquidated, the Star reported on Tuesday.

   

Boogertman Smit Building has filed papers with the court to have  Roux Property Fund, owner of the Middestad building in Pretoria, liquidated.

   

According to the report, Nedbank said in a statement to court that the only people who would benefit from a winding-up order would be the liquidators and auctioneers.

   

Martin Phillips, manager of loss control at the bank's Gauteng division, said in a statement before court that Roux Property Fund was indebted to Nedbank in an amount of R307,489,559.

   

Upon a breach by Roux Property Fund of its obligations to Nedbank, the bank had obtained a judgment against Shabangu in which the bank could sell the Middestad building on execution.

   

Nedbank was set to auction the building on Wednesday.

   

This followed the breach of payment obligation regarding the finance granted for the acquisition of the building.

   

As security for the loan, Roux Property Fund had permitted the registration of mortgage bonds amounting to R418,750,000 to be registered over its properties in favour of Nedbank, the Star reported.

   

The bank had decided to sell the properties at sale of execution and had taken all necessary steps to ensure sale, Phillips said.

   

-Sapa