WBHO Teichman has apparently sold its R3-million investment in Cotswold Downs Management to a third party and pulled out of litigation to liquidate the company. The Durban High Court was told of the decision yesterday.

The hearing for the winding-up of the Cotswold Downs golf estate in Hillcrest, KwaZulu-Natal was adjourned yesterday apparently because there are behind-the-scenes negotiations underway to try and save the management company and the golf estate.

However, provisional liquidator, Pierre Berrange says that he knows nothing about secret negotiations or the possible “white knight” to invest in the business and save it from liquidation.

WBHO Teichman’s representative Maike Simpson confirmed the company had not been paid and that the R3-million debt had been purchased by another company for an undisclosed sum.

He says the original debt owed by the development company to the joint venture remained payable but it would now be paid to the third party that had bought the debt.

Cotswold Downs attorney Maria Davey has refused to comment on the adjournment or the settlement details reached with WBHO Teichman.

FirstRand Bank placed Cotswold Downs Management and two associated companies, Cotswold Lakes and the Fischer Road Water Service Provider into provisional liquidation in February this year. The bank claims it is owed R40-million.

At the same time the bank took judgment against Cotswold directors, Keith Wakefield, Trevor Botsis and Nicolaas van Rooyen who stood surety for the loan. It is not known if the judgments have been executed.

There are 120 investors or “option holders” in the estate and they have been financially damaged because they have not been able to take transfer for the properties purchased. Collectively the investors have put about R60-million into the golf estate.

The liquidation application was supposed to have been made final in March but subsequent adjournments have prevented this order from being made.

According to Berrange, the claims of secured creditors amounted to R124-million. The South African Revenue Service is owed R6,3-million and the municipality is owed a further R6,2-million in unpaid rates.

The concurrent creditors, which include the option holders or investors, amount to a further R106-million.

Readers' Comments Have a comment about this article?  Email us now.