Twee Jonge Gezellen property goes into liquidation

The historic, family-owned Twee Jonge Gezellen wineproducing business has been placed under liquidation in terms of an order granted in the Western Cape High Court.

In September, the business was placed under provisional liquidation. In court papers, the sole director and shareholder, Nicolas Krone, said Twee Jonge Gezellen's financial difficulties began when it suffered a loss of earnings of R21.6 million after it was allegedly supplied with contaminated bottles.

The issue, Krone said in court papers, led to unsuccessful litigation and an additional R1.5m in suppliers' costs, which it was ordered to pay.

Later, the business fell into arrears with the Land Bank. Under a high court judgment, Twee Jonge Gezellen owes the Land Bank R38m. Krone said he and his wife had exhausted pension funds and savings to invest in the business and had only R1m at their disposal.

Krone said if the court placed the business under judicial management, he was confident it could pay its debts and become a successful concern again. A provisional order of judicial management was granted by the high court, but the Land Bank intervened, arguing that the owners had chosen judicial management to avoid paying their debts.

Representatives of the Land Bank said it would be in the best interests of creditors for the company to be wound up. It asked the court to place the company under liquidation.

On September 7, the parties reached an agreement, which was made an order of court, that the business be placed under provisional liquidation.

The case returned to court on Friday when Judge Dennis Davis granted a final liquidation order.

Cape Argus

Posted at 08:24AM Nov 15, 2011 by Editor in Agricultural  |  Comments[1]