Post Provisional Judicial Management Order

January 2010

Administration

A total of 562 emails were received on the judicial managers’ address. A total of 93 faxed were received and 4 registered letters were delivered. No report was drafted.

Holding Companies’ Directors

Early January it became evident, that in order to achieve the original goal of the syndication project, both the Property Company and Holding Company should be management as one “unit” and not as two separate companies. The income-generating asset is held in the property company whilst the shareholder loans and liabilities vest in the holding company. Cooperation with the holding companies’ directors was thus sought in order to negotiate a beneficial outcome to the shareholders’ plight. The negotiations failed rendering the judicial managers no alternative but to retain all income in the property companies. Please see the last page of this report for further suggestions regarding this matter.

Bonatla Property Holdings (Pty Ltd

Negotiations with said company continued in spite of ambiguous locus standi. Legal advice was sought to establish any obligation and/or position of the property companies and the binding effect, if any, of the Special Resolutions taken by the Holding Companies’ director.

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