Hotel operator Pacific Holdings (PAC) advises that it is to dispose of Cape Rendezvous Hotel - its only remaining asset.
The company says Cape Rendezvous Hotel - its wholly-owned subsidiary - has entered into an agreement dated September 28, 2006, with Asands (Pty) Ltd for the disposal of the hotel.
Pacific will dispose of the hotel "voetstoots" to Asands for 20 million rand in cash.
The disposal is subject to approval by the JSE and Pacific shareholders.
Pacific said the company and the group have experienced adverse trading conditions over the last number of years and as a result of this its liabilities exceed its assets.
The directors received a market-related offer for the hotel and are of the opinion that the disposal consideration is adequate to settle any debt owing to third parties.
On receipt of the disposal consideration, Pacific plans to repay debt amounting to approximately 17 million rand owing to Pacific Asia Investments International, the company's controlling shareholder, and Mycom SA - a company controlled by the ultimate parent company of Pacific, Mycom Berhard.
Following the disposal, Pacific will have no assets and will either, subject to the requisite shareholder approval, proceed with an orderly winding-up or pursuing other prospects.
Shareholders will be notified of any decisions taken in this regard, it said.
I-Net Bridge
Publisher: I-Net Bridge
Source: I-Net Bridge
