Interesting Judgment: Wescoal Mining v Mkhombo

02 October 2023

Members,

Please find attached a judgment handed down today by Wilson J in the High Court, Johannesburg.

The Court concluded that, evaluated in conformity with the rules of interpretation, the business rescue provisions of the Companies Act assigned voting interests under section 152 of the Act only to creditors who were creditors of the entity under business rescue at the time the business rescue process commenced.

In line with the above the Court discounted the vote of the Fourth Respondent (post commencement finance creditor) who had voted at the meeting held in terms of Section 151 (2).

Kindly sent to us by Gareth Cremen of Cox Yeats.

Take care
René Bekker
Chief Operating Officer

  SCA Judgment: Wescoal Mining & Another v PL Mkhombo & Others. Case No: 2023-079991