Atul Gupta
More Gupta-linked companies have filed for business rescue, company documents show.
This comes shortly after the family's Optimum mines filed for business rescue earlier this month. This leaves their creditors holding a particularly busy bag of cats.
Earlier today, the Organisation Undoing Tax Abuse (Outa) confirmed that more Gupta-linked companies have instituted voluntary business rescue proceedings.
The management of Confident Concepts (Pty) Ltd, Islandsite Investments 180 (Pty) Ltd, and Shiva Uranium (Pty) Ltd, have resolved to place the companies under business rescue, according to records filed with the Companies and Intellectual Property Commission (CIPC) on February 20, 2018.
But the move places their creditors at a significant risk.
The CIPC has previously reported that only 9.4% of companies that were the subject of business rescue proceedings managed to turn their fortunes around. By taking a resolution to go into business rescue, the management of the companies effectively secure the means to appoint the business rescue practitioner of their choice. Their identity has not yet been confirmed.
Bank of Baroda, which suddenly announced their intended departure from South Africa in March 2018, stands to lose heavily.
Bank of Baroda granted bonds on several properties linked to the Guptas at significantly inflated rates.
For example, a property purchased by the Guptas in La Lucia for R5.3-million was bonded by the Bank of Baroda for R16-million. This is 301% of the value of the property, and placed Bank of Baroda at significant risk.
This may in turn also be detrimental to the bank's other depositors.
Islandsite Investments 180
Islandsite Investments 180 is controlled by Atul Gupta and his wife, Chetali Gupta, alongside brother Tony Gupta and his wife, Arti Gupta. It also owns several well-known properties.
Last week, News24 reported that its Sahara building in Midrand was found empty, with office furniture abandoned and boxes of empty files strewn about the premises.
It also owns the Guptas' "Saxonwold-lite" home in the affluent suburb of Constantia, which has recently come under the spotlight for excessive water usage on the property.
All Craze 20 (Pty) Ltd
Islandsite Investments 180 also owns All Craze 20, both directly as a shareholder and indirectly through Drisdale Investments (Pty) Ltd. The shareholding in these entities will be included in the assets under management by the business rescue practitioners.
The State Bank of India bonded the Clifftop Game Lodge, set on the farm Welgevonden in Lephalele in Limpopo, for an amount of R43.8m. The farm is estimated to be worth R12.6-million.
Confident Concepts (Pty) Ltd
Confident Concepts holds a large portfolio of the Gupta properties, including the properties adjacent to the family's Saxonwold compound. It is also the entity under which Duduzane Zuma's Porsche has been registered. The entity also owns several portions of the farm Brakfontein, near Delmas in Mpumalanga.
Again, the Guptas encumbered the property through excessive bonds registered with the Bank of Baroda.
Running out of money
Islandsite Investments 180 and Confident Concepts own property worth nearly R175-million. This is in addition to the mining rights, equipment and property held in the other companies owned by the Guptas.
Other Gupta-linked companies have simultaneously filed for business rescue. These are:
• Tegeta Exploration (Pty) Ltd
• VR Laser Services (Pty) Ltd
• Shiva Uranium (Pty) Ltd
• Optimum Coal Mine (Pty) Ltd
• Optimum Coal Terminal (Pty) Ltd
• Koornfontein Mine (Pty) Ltd
Authorities have recently ramped up efforts to hold the Gupta family to account.
Earlier this month, the Hawks arrested several business associates of the Guptas in connection with their involvement in the Estina dairy project in the Free State.
The Hawks have issued a warrant of arrest for Ajay Gupta for charges that are not related to the dairy farm case, however.