Pinnacle Point liquidated

Ailing property firm Pinnacle Point, a company in which union workers invested over R200m, has been liquidated following an order granted in favour of one of its shareholders Cape Point Vineyard.

Sybrand van der Spuy, the owner of Cape Point Vineyard, said Pinnacle Point had been liquidated late last week. He said the next step would be to initiate a section 417/418 inquiry, which would investigate how Pinnacle Point monies were expanded and how the company got to a financially appalling mode.

“Yes Pinnacle Point has been liquidated. A liquidator has been appointed already. I am seeing the liquidators later this week. We will be asking for a section 417/418 inquiry,” Van Der Spuy said.

Van Der Spuy’s company Cape Point Vineyard owns  80m shares or just under 1% of the Pinnacle Point Group.  Cape Point Vineyard won a business rescue in July, appointing Mike Lane as a practitioner. But because of issues and allegations of some who failed to support the business rescue, the circumstances pushed Cape Point Vineyard to convert its business rescue application into a final liquidation.

Initially Van Der Spuy felt there were prospects to rescue Pinnacle Point and potentially help recover millions of rands of workers money invested in the ailing company.

About R260m of Southern African Clothing and Textile Workers Union (SACTWU) monies were invested in Pinnacle Point Group (PPG).  Referring to the liquidation Van Der Spuy said two months ago that:

“It’s not a disaster for myself I am losing a bit of money but if you look at the poor pensioner they are losing R260m and the chances of shareholders getting any money back I think it’s zero ... I have lost R5m. It’s one thing for me to lose R5m and other people to lose R260m.”

Another source confirmed the final liquidation was unopposed, but there were plans to push for a business rescue in spite of the final liquidation.

Pinnacle Point has been suspended from the JSE and could be delisted.