Cape Town - The liquidation hearing of the Markus Jooste-owned Mayfair
Speculators has been postponed to February next year after Judge Siraj Desai ruled in
the Cape High Court that the matter needs a full hearing as it has
far-reaching implications, according to the Sporting Post website.
READ: Jooste's Mayfair Speculators sell Horse of the Year, Legal Eagle
Earlier this week, Jooste relinquished his racing silks and resigned
as a member of the National Horseracing Authority.
The question of whether the sale of the Mayfair Speculators'
horses-in-training would continue and if trainers would continue to be
paid remains unanswered. The
judgement makes reference to the opening of a second ‘operating
expenses’ bank account, which will be closely monitored by Absa and a
weekly budget/cash-flow is required to be submitted to the bank.
In court papers on Friday supporting the liquidation application, Moneyweb
reports that Absa accuses Jooste and Stefan Potgieter, his son-in-law
and currently the sole director of Mayfair Speculators, of ‘naked fraud’
following representations made to Investec and the transfer of assets
from Mayfair Speculators to its holding company.
Jooste, a horse breeder and racing fanatic, quit as Steinhoff
International Holdings NV CEO earlier this month after the discovery of
suspected financial wrongdoing.
Shares in the global clothing and
furniture retailer crashed 85% following the news, wiping a staggering €11bn
(R176bn) from the value of the company.
According to Fin24, the court papers suggest that Mayfair Speculators owes three banks
more than R1.2 billion.
Absa claims R226 million, while Investec and
Sanlam are owed R250 million and R800 million, respectively.
These loans were secured by Mayfair Speculators’ holding of Steinhoff
shares. The banks have now called up these loans after Steinhoff’s
shares fell from around R70 to R4.50 on Thursday this week, following
one of the largest ever corporate scandals in South Africa.
Earlier in the week it was confirmed that Jooste had sold dual Horse of the Year winner, Legal Eagle, to Tekkie Town founder and owner Braam van Huyssteen for an undisclosed sum.
Tekkie Town is a subsidiary of Steinhoff.
Van Huyssteen, who has around 175 horses, appeared thrilled with his
“He’s the best
horse in the country,” he said, adding that he is hoping Legal Eagle
will provide him with his first Grade 1 victory.
Meanwhile, unconfirmed reports suggest Mayfair Speculators have sold a second star horse, Edict Of Nantes.
The Sporting Post website reported that dual Grade 1 winner Edict Of Nantes has passed all veterinary and
statutory requirements and will be exported to join the Tony
Millard yard in Hong Kong.
If the rumoured sale proves to be true, it would make the
classy 4-year-old a doubtful starter for the Sun Met in view of Hong Kong 's
import restrictions governing race exposure.
According to leading bookmakers, BET.co.za, Legal Eagle has been installed as 3/1 favourite for the Sun Met, wit Edict Of Nantes next best at 6/1.
Judge Desai said during the hearing that the matter is of “great
importance” for several parties and postponed the matter to Thursday, February 8.
Prior to that, two of South African horseracing's biggest race days - the L'Ormarins Queen's Plate (Saturday, January 6) and the Sun Met (Saturday, January 27) will be contested, both at Kenilworth racecourse in Cape Town.