Moneyweb have done their usual thorough analysis and equally as usual, they “tell it like it is”. The picture that it paints is that Debenture Holders can not realistically expect repayment out of Nova, which, possibly, faces being placed under administration as one of the outcomes of the CIPC investigation into its affairs. This has already been alluded to in CIPC’s media release on the Compliance Notices issued to Nova, in August last year
Is this yet another blow for debenture holders and is there any good news? It’s long been apparent that Nova can’t repay and CIPC stated last year that, in their opinion, Nova has neither the capability nor the intention to do so!
The good news still lies in the potential outcomes of the CIPC’s inter-regulatory investigation into Nova and the wider issues surrounding the Property Syndication Promotion Companies (PSPCs) close-down in 2010 – which included Sharemax
CIPC have “gone public” with an announcement about the SA Reserve Bank & the (then) Financial Services Board’s (FSB) actions back in 2010. They did this (process still underway?) by advising the former directors of those PSPCs that that were shut down, that the 2010 actions of SA Reserve Bank and the FSB were/are illegal. They have also informed those directors that “A preliminary report containing comprehensive detail that establishes the grounds of our averments [refer our post in this page on 27 October] will be published in due course to allow various stakeholders to make submissions that will address the issues requiring attention and cause to be redressed that which various courts wrongfully accepted as truth”
Note the “address the issues” and “cause to be redressed”. It is in the further outflows of the investigation that the best hope of debenture repayment lies. But, it will take time. This is all taking place in the regulatory and legal arenas and much deliberation and decision making still lies ahead as well as the possible need for court orders and/or judgements
Read the Moneyweb AFS analysis here:
www.moneyweb.co.za/news/south-africa/nova-cannot-repay-former-sharem ax-investors/?mc_cid=7a776e03e7 <www.moneyweb.co.za/news/south-africa/nova-cannot-repay-former-share max-investors/?mc_cid=7a776e03e7&mc_eid=8c2e642ad4> &mc_eid=8c2e642ad4
Or
<www.ndcag.co.za/go/20231109> www.ndcag.co.za/go/20231109
The Nova AFS can be viewed at: novapropertygroup.co.za/index.php/financial-statements/