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AFRICAN DAWN 2015 Annual Report

Notes to the Financial Statements continued 10. Properties in possession (continued) For this reason, the reconciliation above is split as follows: • Amount relating to legal title of entire property • Less PTF3 share of the property (50%) • Equals amount relating to Afdawn Group’s share of the property (i.e. the 50% referred to above that is in substance Afdawn Group’s share of the property). Blue Dot has since been placed in liquidation and there is a dispute in terms of which the liquidator is attempting to have the property transferred back into the insolvent estate of Blue Dot. Negotiations between the Blue Dot liquidator and Candlestick are currently under way in an attempt to settle the dispute between the parties in order to enable Candlestick to sell the property. The other claims against the property include: • A Nedbank loan, in terms of which Nedbank registered a first bond against the property. The original facility was R14 100 000 and the amount outstanding at the reporting date was R8 868 592 (2014: R10 073 653) (refer to note 17). • A possible claim relating to Blue Dot linked to the perfecting of the security that lead to the acquisition of Greenoaks from Blue Dot in August 2010. In an attempt to stop the transfer of Greenoaks to Candlestick, the claimant applied for the liquidation of Blue Dot Properties in December 2010. The Group does not believe that this meets the definition of a liability and due to the nature of the dispute, has not disclosed any further information because such disclosure would seriously prejudice the position of the Group (refer to notes 1.20 39). AFRICAN DAWN 82 ANNUAL REPORT 2015


AFRICAN DAWN 2015 Annual Report
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