“Property magnate Nic Georgiou may face claims of more than R3 billion from investors of two failed Highveld Syndication (HS) schemes, after another defeat in the Supreme Court of Appeal (SCA),” Moneyweb reported last week.
This was as a result of the SCA’s dismissal of Georgiou’s appeal against a previous High Court Judgement which found he must honour the buyback agreement he signed with an HS 22 investor. Acting Judge Moroa Tsoka also confirmed that the buyback agreements were not affected when the HS companies were put into business rescue.
The judgement is good news for the thousands of HS 21 and HS 22 investors who signed similar agreements to institute claims against Georgiou. He may, therefore, be liable to repay the R1.3 billion to HS 21 and R1.8 billion to HS 22 investors. The Moneyweb report indicated that he will also be liable for interest payments.
Click here to read the Moneyweb article.
Click here to read an update article that indicates that “an unnamed ‘third party’ will make an offer to settle investors’ claims against Orthotouch and Zephan with Accelerate shares”.