Legal issues cloud Sails’ cash recovery

The hunt continues in and beyond South Africa for cargo shipped on five SA Independent Liner Service (Sails) charter vessels, prior to the company’s provisional liquidation in the Cape High Court last month. At the same time the liquidators, Sanek Trust Recovery Services, have begun recovering monies on behalf of Sails. “The books are being written up at the moment but I have got R300 000 back so far,” says Sanek’s Darusha Moodliar. As to how much she expects to recover, she points to a Sails debtor book of around R98 million. “If we collect R3 million I will be lucky.” On progress in recovering cargo, Moodliar says: “Sails had agents all over the place; in some instances they recovered cargo as well and they do not want to pay over, so there are a lot of complicated legal issues.” Last week FTW reported one of the Sails charter vessels, Taga Bay, had off-loaded her cargo in Las Palmas but Moodliar says her understanding is the vessel’s owner has taken a decision with regard to the cargo, meaning that it is outside Sanek’s control. As to the worth of Sails, should it ever come on the market, she says: “I have no idea, given it has no assets.” An affidavit filed before the Cape High Court last month by Robert Scott, general manager of the Lonrho Group in Southern Africa, has it that Sails liabilities exceed assets by R212 million and that Lonrho’s loan account claim against Sails is some US$40 million.”