Debentures linked to Amogela Mall / Liberty Mall
- jp55467
- Aug 19
- 2 min read
Updated: Sep 1
Executive Summary – Debentures linked to Amogela Mall / Liberty Mall
This Executive Summary provides a high-level overview of the key facts concerning the Debentures associated with the Amogela Mall / Liberty Mall property.
1. Initial transfer values
The Amogela Mall / Liberty Mall property was transferred from the Sharemax Group of
Companies to the newly established Nova Group of Companies at the following values:
- Property Value R 118,559,056
- Debenture Value R 120,226,031
2. Property disposal
During 2021, the property was sold to Mystic Blue Trading 259 (Pty) Ltd for a significantly reduced
amount of R 21,500,000.
3. Outstanding proceeds
More than 3.5 years after the sale, the Nova Group has yet to receive any proceeds from the
disposal.
4. Liquidation of new owner
The new owner, Mystic Blue Trading 259 (Pty) Ltd, is currently in liquidation. As a result, there is
no foreseeable short-term likelihood of recovering any proceed, if at all.
5. Debenture value reduction
The value of the Debentures has been drastically reduced to R 5,604,572, representing a
staggering 95% decrease from the original value of R 120,226,031.
6. Security offered against debt
Due to the Nova Group’s failure to meet its payment obligations to a trade creditor, and in an
effort to avoid liquidation proceedings, the Nova Group offered the bond registered over the
Amogela Mall property as security for the outstanding debt.
7. Creditor enforcement
To date, the debt remains unpaid, and the creditor is currently in the process of enforcing their
rights under the registered bond.
8. Lack of disclosure
These material facts are not disclosed in the Audited Annual Financial Statements as of 29
February 2024 (as well as with previous financial years). Furthermore, the external auditors’ audit
procedure deemed this qualitative omission not material to warrant disclosure as a key audit
matter in their unqualified audit opinion.
9. Conclusion
Given the deteriorated condition of the property, the liquidation of the new owner, and the bond
being used as security for unpaid debt, it is highly probable that Debenture Holders will receive
no return from the sale of the Amogela Mall property.
A more detailed disclosure of the aforementioned facts, along with references to the underlying supporting documentation, is provided in the annexures attached to this Executive Summary.
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