Edcon creditors’ bid to halt business rescue struck off the roll
Kingsgate Clothing and Clematis Trading filed the urgent application in a bid to halt the adoption of Edcon's business rescue plan, which could see the group sold by July.
JOHANNESBURG - An urgent court interdict brought by two of Edcon's creditors to stop a business rescue plan from being adopted has been struck off the roll due to a lack of urgency.
The retailer's creditors - Kingsgate Clothing and Clematis Trading - approached the High Court in Pretoria to stop talks, which are expected to be held on Monday afternoon to approve or reject the plan for the company.
Edcon owes Kingsgate and Clematis at least R42 million.
They turned to the courts when it was revealed that they would receive four cents for every R1 they are owed after initially being assured they would get at least 50 cents.
Earlier this year, Edcon announced that it was under business rescue and unable to pay its suppliers.
Kingsgate and Clematis filed the urgent application in a bid to halt the adoption of Edcon's business rescue plan, which could see the group sold by July.
Edcon, which owns retailers Edgars and Jet, was placed under business rescue in March.
The ailing retailer was unable to pay its suppliers and could see at least 22,000 jobs slashed in order to save the retail giant from liquidation.