Registered users can save articles to their personal articles list. Login here or sign up here

FirstRand applies for liquidation of Schalk Burger’s wine company

Welbedacht Wines is indebted to FirstRand to the tune of R3.3m.

JOHANNESBURG – FirstRand Bank has applied to the Western Cape High Court for the liquidation of Welbedacht Wines. The wines are produced on the Welbedacht Estate in Wellington. The estate is home to the Burger family: Schalk Sr, his wife Myra, sons Schalk Jr and Tiaan, and daughter René. Schalk Sr and Jr are both former Springbok rugby players.

The application was set to be heard on Wednesday September 11 but was postponed to October 9. A copy of FirstRand’s notice of motion can be downloaded here.

At the time of writing the Burger family had not returned e-mailed and telephonic requests for comment.

According to the estate’s website, Schalk Sr acquired the Welbedacht farm in 1997. The estate produces a range of wines.

The founding affidavit for the liquidation application was deposed by Vanitha Odayar, a manager of First National Bank Wealth Legal Collections, a division of FirstRand Bank. Odayar notes that at June 11, 2013 Welbedacht Wines Proprietary was indebted to FirstRand in the amount of R3.3m.

The debt is the result of a credit facility agreement of R3.1m granted in January 2009. The facility was supposed to be repaid within two years. However, Welbedacht was granted several extensions on this repayment deadline.

Odayar points out to the court that a credit bureau assessment records four judgments and two defaults against Welbedacht Wines.

On April 23 FirstRand’s attorneys served a letter of demand on Welbedacht. Odayar says that no response was received to this demand. This left it no choice but to launch the liquidation application.

FirstRand’s loan is secured by a mortgage bond over a sectional title property in Cape Town, as well as suretyships furnished by Schalk Sr, Die Burger Familie Trust and Trakprops 60.

Get access to Moneyweb's financial intelligence and support quality journalism for only
R63/month or R630/year.
Sign up here, cancel at any time.

COMMENTS   0

Comments on this article are closed.

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR
Insider GOLD
ONLY R63pm

Moneyweb's premium subscription is a membership service which will give you access to a number of tools to take charge of your investments.
Or choose a yearly subscription at R630pa - SAVE R126

Get instant access to all our tools and content. Monthly subscription can be suspended at any time.

Podcasts

GO TO SHOP CART

Follow us:

Search Articles:Advanced Search
Click a Company:
server: 172.17.0.2