Zebediela Fruits undergoing business rescue, applies for voluntary liquidation

Citrus producer, Zebediela Fruits in Limpopo, is undergoing business rescue after it failed to settle a debt of more than R170 million rands.

The farm’s shareholders filed for liquidation in April. The once-thriving Zebediela Citrus Estate has been facing financial difficulties since 2016.

The voluntary liquidation of the company’s assets is expected to be finalised in August.

Shareholding junior partners, Humansdorpe Corporative, and majority stakeholder, Bjatladi Communal Property Association appear to be agreeing on a voluntary liquidation of the citrus estate, in order to fast-track the possible sale of its assets after the appointment of a liquidator.

“Around February this year, Humansdorpe community limited wrote a letter of demand to Zebediela Fruits, to say you owe us R170 million and we want it within three weeks, and three weeks passed. On the 3rd of April Humansdorpe went to court to ask the court to liquidate it.”

Financial difficulties, spurred by corruption and the mishandling of funds are not new allegations for Zebediela Estate. It has been under business rescue as far back as 2016 several shareholders have come and gone on.

Now, the squabbles between the two partners have led to solvency challenges.

The Bjatladi CPA has only paid a small portion of the amount it owes.

“Out of that R190 million, only R17 million was paid back to Humansdorpe, leaving it with only R179 that I referred to earlier. So, they are going to court because they want the company liquidated because they are being owed R179 million.”

Hundreds of workers have not been receiving their wages since December.

“The implication started there with the workers when they started losing their jobs. The other implication is that Bjatladi CPA relied on the rental from Humansdorpe R3.5 million. Everything being equal and the co-op saying they do not have money it means they may not be paying them.”

A liquidator is expected to be appointed following the civil case in August.