The National Housing Finance Corporation (NHFC) has applied for the liquidation of Sea Kay Holdings and one of its wholly owned subsidiaries.
However, Pieter van der Schyf, an executive director and acting chairman of Sea Kay, confirmed yesterday that it was opposing the application because it had legal opinion that the actions instituted by the NHFC were factually and legally flawed. The listed mass affordable housing construction company had a reasonable prospect of successfully defeating the application.
Delca Maluleke, an NHFC spokeswoman, confirmed yesterday it had launched an application for the liquidation of Sea Kay Engineering Services and Sea Kay Holdings. She said the NHFC expected the application to be heard in April.
Van der Schyf said the application was related to a loan agreement between the NHFC and Sea Kay Engineering to the value of R128 million to finance low-cost housing.
He said Sea Kay Holdings had signed surety for the loan. The current amount outstanding on the loan was R108m. To date, Sea Kay had paid back R56m, including interest.
Van der Schyf said Sea Kay's board was positive the matter could be resolved.
He said that through the 16 contracts the government had entered into with Sea Kay, the different housing departments owed the company far more in outstanding payments than the alleged NHFC liability.
Sea Kay is the biggest single entity delivering housing products nationally within the Human Settlements Department's housing programme.
The NHFC is the housing finance arm within the department that provides funding to companies to deliver on government housing contracts.
"The step (to apply for liquidation) was taken after every effort to accommodate Sea Kay Engineering Services was made and also exhausting every opportunity to remedy the situation," Maluleke said.
Maluleke added that the NHFC, as a development finance institution, had an obligation to make funding available to low- and middle-income households.
"For the NHFC to continue doing this at scale and on a sustainable basis, it is imperative that money owed to the corporation is repaid."
Sea Kay has experienced severe cash flow problems since last year because of delayed and late payments by the government. This included more than R100m owed to it by the Gauteng Housing Department and about R133m in the Western Cape.
Van der Schyf said substantial progress had been made in resolving its payment dispute in the Western Cape and a speedy solution was expected. It was also negotiating with the Gauteng department..
However, Pieter van der Schyf, an executive director and acting chairman of Sea Kay, confirmed yesterday that it was opposing the application because it had legal opinion that the actions instituted by the NHFC were factually and legally flawed. The listed mass affordable housing construction company had a reasonable prospect of successfully defeating the application.
Delca Maluleke, an NHFC spokeswoman, confirmed yesterday it had launched an application for the liquidation of Sea Kay Engineering Services and Sea Kay Holdings. She said the NHFC expected the application to be heard in April.
Van der Schyf said the application was related to a loan agreement between the NHFC and Sea Kay Engineering to the value of R128 million to finance low-cost housing.
He said Sea Kay Holdings had signed surety for the loan. The current amount outstanding on the loan was R108m. To date, Sea Kay had paid back R56m, including interest.
Van der Schyf said Sea Kay's board was positive the matter could be resolved.
He said that through the 16 contracts the government had entered into with Sea Kay, the different housing departments owed the company far more in outstanding payments than the alleged NHFC liability.
Sea Kay is the biggest single entity delivering housing products nationally within the Human Settlements Department's housing programme.
The NHFC is the housing finance arm within the department that provides funding to companies to deliver on government housing contracts.
"The step (to apply for liquidation) was taken after every effort to accommodate Sea Kay Engineering Services was made and also exhausting every opportunity to remedy the situation," Maluleke said.
Maluleke added that the NHFC, as a development finance institution, had an obligation to make funding available to low- and middle-income households.
"For the NHFC to continue doing this at scale and on a sustainable basis, it is imperative that money owed to the corporation is repaid."
Sea Kay has experienced severe cash flow problems since last year because of delayed and late payments by the government. This included more than R100m owed to it by the Gauteng Housing Department and about R133m in the Western Cape.
Van der Schyf said substantial progress had been made in resolving its payment dispute in the Western Cape and a speedy solution was expected. It was also negotiating with the Gauteng department..
- Business Report
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