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Monday, September 26, 2005 - Web posted at 6:43:44 GMT Avid nears the end with final order on winding-up *WERNER MENGESTHE financial collapse of Avid Investment Corporation, the young asset management company that landed a N$30 million investment from the Social Security Commission despite its evident inexperience, was confirmed on Friday when the High Court made a final order for the company to be liquidated. |
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With no one opposing the SSC's application for Avid to be liquidated, Judge Nic Hannah on Friday turned the interim order for the winding-up of the company that Acting Judge Raymond Heathcote had given on July 12, into a final order. With this step, Avid is being placed in the hands of the Master of the High Court, who will have to oversee the liquidation process from here on. It is to be a two-fold process: as a first leg, liquidator Eric Knouwds, who has been put in control of the company, will have to trace all assets that had been under Avid's control, and as a second leg, he will have to receive claims that creditors have against Avid for money that the company still owes them. The SSC, with the N$30 million that it entrusted to Avid in late January to be invested for a four-month period, is expected to be the largest of these creditors. Another major creditor is the Swapo-owned Kalahari Holdings, which was persuaded to invest N$7 million through Avid in March of this year. Neither the SSC nor Kalahari Holdings has received any of their investment money back yet. Avid's failure to return N$30 million plus promised interest earnings of some N$1,47 million to the SSC by late May prompted the SSC to ask the High Court to provisionally liquidate Avid on July 12 because the company was unable to pay its debts. |
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