Embattled IT group MGX is to sell its Midrand property to C-Max forR35 million.
C-Max, a subsidiary of Zenprop Property Holdings, will pay MGX on theeffective date of the deal, which will be once the transfer of ownershiphas been registered, expected to be on 31 August.
The sale of the property has been expected since last November, whenthe group admitted it almost collapsed as a result of a high debt burden,deteriorating trading performance and legal disputes.
Saved by a consortium of its financiers, it said it would secure itsfuture by restructuring, disposing of several businesses, selling the Midrandproperty and delisting from the JSE.
According to its recovery plan, the Metrofile subsidiary will be MGX'sonly operating asset after the restructuring. MGX plans to change its nameto Metrofile as a result.
A statement from MGX indicates that the proceeds of the property disposalwill be used to reduce interest-bearing liabilities and obligations.
It says it has obtained irrevocable undertakings from the requisitemajority of independent shareholders to ratify the disposal.
IT Web
Publisher: Business Day
Source: Business Day
