MBABANE - After 12 years of doing business, Peak Strike Force Investments is closing shop.
The Pigg’s Peak-based company, which had employed hundreds of emaSwati, has applied to be placed under liquidation and among its reasons for same is that it owes the Eswatini Revenue Service (ERS) a sum of E9 468 077.10. Peak Strike Force Investments (PTY) Limited was engaged in firefighting and siviculture services. Siviculture is the practice of controlling the growth, composition/structure, as well as quality of forests to meet values and needs, specifically timber. The court was told that the company was at a stage where even business rescue proceedings could be of no good use.
Liquidation is the process by which a company is brought to an end, and the assets and property of the company are redistributed. Liquidation is also sometimes referred to as winding-up or dissolution, although dissolution technically refers to the last stage of liquidation. Through its directors, the company has since approached the High Court, where they narrated why they felt it was no longer judicious to continue with operations.
Registered
The court was informed that the company was registered in 2011 with an authorised share capital and the shareholders were Mafutha Thulebona Nkosi and Thomas Fulathela Mabuza now deceased. The application for winding-up of the company was brought to court by one of the directors, Patrick Makhangeza Ndwandwe, who averred that the petitioner (company) should be liquidated on the basis that it was unable to pay its debts. He narrated to the court to the court that during the year 2017, the company ran into serious cash flow problems, which were mainly attributed to the economic recession. According to Ndwandwe, the company was not being consistently given contracts by Peak Timbers, being its major client. “As a result of this unfortunate situation, your petitioner fell into serious debts with its suppliers, who now form part of the major creditors. The company owes ERS a sum in excess of E9 468 077.10,” submitted Ndwandwe.
He went on to bring it to the attention of the court that, with previous debts of equipment, working tools, industrial and freighting, motor vehicles, supplied to the company, it would be unable to pay for same. According to the director, all efforts that were made to clear the debts due to suppliers and creditors had failed as same kept on escalating. He went on to disclose that the company also owed Mhlambanyatsi Group a sum of E312 566.65. “Your petitioner also owes other creditors including employees for unpaid wages, Brakes Services (PTY) Limited, Buy Cash Hardware, Commercial Vehicles Services, Kuthuka Road Works and Eswatini National Provident Fund. Propshaft Q Swazi Drive Line, to name a few,” submitted Ndwandwe.
He averred that the company’s continuance to trade would constitute recklessness and fraudulent trading since it was clear that it would not be in a position to pay debts and fulfil its statutory obligations. Ndwandwe further pointed out that the company had not been trading for over 24 months. He stated that, the company had no assets of any value except for few outstanding debts to be recovered, which were of no inconsequential value. It was also his submission that, if recovered, the debts owed to the company, would be utilised to settle any creditor’s claim that would be lodged and proved to the liquidator. “The prudent move to liquidate your petitioner is also founded upon statutory compliance requirements. That is to avoid issues incurring further credit under circumstances where the trading is unregulated to protect small companies like ours from the fierce competition posed using franchise name,” he argued. Ndwandwe submitted that, ever since the demise of Mabuza, his co-director, Nkosi had not participated in the affairs of the company. The application is pending before Judge John Magagula.
Presented
The company is represented by lawyers from Sithole and Magagula Attorneys. Meanwhile, in an almost similar application, the country oldest furniture manufacturing company, Woodmaster recently obtained an order to be placed under liquidation. Woodmaster Furniture Manufacturing Company (PTY) Limited, which is situated at Sidwashini in Mbabane was founded in 1969 as per information contained in its website. The closing of the company comes after it approached the High Court on urgent basis, where it advanced a number of reasons why it felt it should be allowed to wind- up. It was brought to the attention of the court that one of the reasons for the closure of the company was that, it was unable to pay its major debt of E15 753 123.08 it has with ERS.