Consortium loses bid for Botswana motor plant

Gaborone- Botswana (PANA) ­ The South Africa conso-rtium which won a bid to buy most of the assets of the collapsed Hyundai Motor Company of Botswana have failed to pay within the agreed time.
Therefore the company's liquidators, the accounting firm of Deloite and Touche, were reportedly toying with the option of taking the South Africans, grouped under the Kimberley City Company (KimcarCo), to court.
"We are waiting for instructions from the stakeholders on what action to take," Terry Brick of Deloite and Touche said, adding that he could not rule out the possibility of a court action.
When they won the bid for the collapsed Hyundai Completely Knocked Down (CKD) kits in Broadhurst last November, KimCarCo was given till March 2001 to pay.
However, the period was extended to 8 June after the company pleaded for an extension to look for more funds.
That deadline passed Friday without the company honouring the agreement.
Before the deadline passed Brick asserted that in case KimCarco failed to pay, the agreement would be cancelled and the liquidators would be entitled to sue for damages and breach of contract.
KimCarCo bought the state of the art Hyundai machinery - composed of body assembly plant, paint shop and final assembly plant which cost 26 million US dollars to put up - for 7.
2 US dollars million.
According to the terms of the auction agreement, KimCarCo was supposed to have paid the money and removed the machinery by 31 March 2001 or immediately after the employees at the plant finished with the pending orders.
The Botswana motor company went under the hammer last November after its creditors went to court to get back their money.
This followed the collapse of the motor empire of Billy Rautenbuch's who was the majority shareholder of the Botswana Hyundai operations.

10 june 2001 10:07:00




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