Pinnacle Point Resorts is likely to be sold to an unnamed German company and the money from this sale will be used to repay almost R71-million owed by Pinnacle Point Group to Investec Bank.
According to Pinnacle’s chief executive Sibusiso Gamede the company’s agreement with the German company had been extended to 31 May to allow investors to provide proof-of-funds and guarantees.
It also allows time for Platinum members to approve the deal.
Pinnacle announced in February that it had secured an investor that would put money into the company and would convert the Pinnacle Point Resort in Mossel Bay to a five-star resort and championship golf course.
The February agreement came after Pinnacle had failed to dispose of its Clarens Golf and Trout Estate in an effort to raise funds to pay Investec Bank. The company has refused to disclose the sale price of its Mossel Bay investment.
Investec applied to the Western Cape High Court for the provisional liquidation of Pinnacle Point Resort claiming that it was owed R70,6-million.
It also claimed that Pinnacle was “commercially insolvent” having posted a headline loss of R271-million for the financial year ending in February 2010.
According to Pinnacle the decision to sell the resorts it owns was based on the fact that these investments were not part of the future strategy of the company.
Despite the announcement that it had found an investor to buy the Mossel Bay resort, Pinnacle’s shares fell to just one cent on Friday last week having lost 50% of their value, which was clearly not a lot.
Readers' Comments Have a comment about this article? Email us now.