Investec Bank, which is owed R65-million by the Cotswold Downs Development Company, plans to present a report to investors on Wednesday that is aimed at ensuring their investments are safe. The company allegedly failed to pay 126 investors their money and owed First National Bank a further R40-million.
Investec and FNB started legal proceedings to get their money back.
Investors in the project had not been able to take transfer of their sites because the development company could apparently not pay the outstanding VAT that was owed to the South African Revenue Service.
One of the developers, Keith Wakefield, confirmed at the meeting of investors last week that the debt to FNB had been settled after he traded his shares in the Pearls development at Umhlanga Rocks and bought back a R3,5-million debt owed to WBHO Teichman Plant Joint Venture that had intervened in the bank’s application for liquidation.
A committee of investors has been set up to deal with the dispute and committee chairman Ryno Eksteen says that they will wait to see what the rescue plan contained before being swayed by it.
He says he will only be able to respond to the plan after it has been tabled and investors have had time to consider the proposals.
In a separate development, a Durban court has ordered the Cotswold Fenns Equestrian Housing Estate to repay R1,3-million to an investor, Pierre du Toit for two sites that were purchased in 2006.
Du Toit says that since he paid the money to the housing company, no work had been done on the site and the developers were ordered to repay the money to him but have not yet done so.
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