Cadilu dodges bankruptcy

THE threatened bankruptcy and liquidation of one of the largest employers in the Namibian hake fishing industry, the Walvis Bay-based Cadilu Fishing, and the loss of hundreds of jobs that would have followed on the company’s collapse, were staved off on Friday.

Two and a half weeks after asking the High Court to order that Cadilu Fishing should be placed under provisional liquidation, Standard Bank Namibia on Friday requested the court to set aside the provisional liquidation order that was given on February 4.
Acting Judge Johan Swanepoel granted the bank’s application, thereby ending a 16-day period in which Cadilu was in danger of being declared insolvent because of an inability to pay back an overdraft of over N$42,5 million to Standard Bank Namibia.
Cadilu, which is mainly engaged in the hake fishing and processing industry, employs about 700 people.
Standard Bank’s Head: Corporate and Investment Banking, Jaco Burger, informed the court in an affidavit that after the company was ordered to be placed under provisional liquidation, the bank was provided with guarantees by First National Bank of Namibia for the payment of Cadilu’s overdraft with Standard Bank.
With this, the ground on which Standard Bank applied for the company’s provisional liquidation in the first place has fallen away.
‘It would appear that, in light of recent developments, it may be possible for (Cadilu Fishing) to continue trading in the ordinary course,’ Burger stated in his affidavit.
‘The recent developments include the possibility of (Cadilu Fishing) being awarded a bridging fishing quota by the Minister of Fisheries and Marine Resources, provided the liquidation does not proceed.’
It was reported a week and a half ago that the Minister of Fisheries and Marine Resources, Dr Abraham Iyambo, had decided to grant an additional fishing quota of 3 500 tons to Cadilu.
He however decided to hold back the additional quota as long as the company remained under provisional liquidation.
Iyambo is set to have a consultative meeting on the impact of the global economic slump on Namibia’s fishing industry with representatives of the industry at Swakopmund today.
According to financial statements of Cadilu that have been filed with the High Court, the company recorded a pre-tax profit of N$11,3 million in 2007.
Over the previous four years, though, the company had suffered pre-tax losses totalling N$82,2 million.
werner@namibian.com.na

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