The insolvency of African Global Holdings, formerly known as Bosasa, was part of the liquidator’s legal team’s submissions. This as they appealed a high court decision which reversed the liquidation of the company.
Fourteen of the company’s subsidiaries were also liquidated.
During his submissions, the liquidator’s senior counsel, Advocate Werner Luderitz, said the companies were insolvent, submitting that they could not pay debts because they did not have bank accounts.
“The question is where the security is because section 350 doesn’t contemplate a solvent company. It is a solvent company that has no debts or company that is provided security to the master that will discharge all its debts in 12 months”.