Lalandii’s last assets to be sold

A REARRANGEMENT of the Namibian fishing industry that has followed the financial collapse of one of the country’s oldest fishing companies, Namibian Fishing Industries (Namfish), and two of its main subsidiaries saw the High Court approving the sale of some of the last remaining assets belonging to provisionally liquidated Namfish daughter company Lalandii yesterday.

In terms of an order that was granted by Judge Annel Silungwe, the provisional liquidators of Lalandii are now authorised to sell two fishing vessels belonging to Lalandii, and to let 29 residential properties that still belong to the company. With a 9 095 ton hake quota for the 2004/05 fishing season, Lalandii is one of Namibia’s largest quota holders for that species of fish.The company and a sister company, Northern Fishing Industries, which operated a freezer vessel for the catching and processing of hake, have been in provisional liquidation since February 21.They have suffered severe financial losses over the past three years due to the same hardships that have hit other major players in the fishing industry: a decline in the demand for hake, erratic catches, rising operating costs and a fall in the average prices for their products.From 2002 to February this year, Lalandii accumulated losses amounting to N$31,1 million, while Northern Fishing Industries ran up losses of N$39,9 million, the High Court was informed when it was asked to order the winding-up of the companies.Their holding company, Namfish, which was a 58-year-old veteran of the Namibian fishing industry, did not escape the effects of the problems that Lalandii was experiencing either.Namfish was provisionally liquidated on June 13, and that provisional order was made final on July 4, ending the life of a company that had at one stage been listed on both the Johannesburg and the Namibian Stock Exchanges.Namfish in turn had a 3 202-ton hake quota for the current year’s fishing season.Where Namfish and Lalandii have been failing, competitors have stepped in to fill the gap that their passing left.This may signal a consolidation of the industry, with larger, healthier companies taking the opportunity to expand their bases by buying up assets that have become available because of erstwhile competitors’ demise.NovaNam, a member of the Pescanova Group whose 24 942-ton hake quota is the single largest quota of any company for the 2004/05 fishing season, last month agreed to buy Lalandii’s fish processing factory at Luederitz for N$26,1 million.Part of the deal clinched between NovaNam and Lalandii provisional liquidators Dave Bruni and Ian McLaren was that Lalandii’s hake fishing rights would also have to be transferred to the NovaNam nominee that was set to buy Lalandii’s assets, Mangetti Oya Fisheries, which after the takeover transaction has changed its name to Lalandii Holdings.With that deal having been done, the original Lalandii was left owning two fishing vessels, MFV Harvest Nicola and MFV Harvest Equihennois, which NovaNam expressly excluded from its takeover offer for Lalandii’s other assets.Bruni and McLaren yesterday got the court’s permission to sell those ships to another competitor of Lalandii and Namfish, Cadilu Fishing, for N$5 million.Cadilu is itself one of the larger hake quota holders in Namibia.The company’s quota amounts to 8 829 tons of hake for the 2004/05 season.In addition to getting the court’s permission to sell the two vessels to Cadilu, the provisional liquidators were also given the green light to let 29 residential properties that still belong to Lalandii.The properties will be rented by Lalandii Holdings, which will also be taking over the payment of rates and taxes, insurance and maintenance on the properties, for N$33 000 a month, the court was informed.Lalandii Holdings has furthermore indicated that it may ultimately wish to buy the properties, Bruni also stated to the court.Lalandii will remain in provisional liquidation until October 3, 2005.With a 9 095 ton hake quota for the 2004/05 fishing season, Lalandii is one of Namibia’s largest quota holders for that species of fish.The company and a sister company, Northern Fishing Industries, which operated a freezer vessel for the catching and processing of hake, have been in provisional liquidation since February 21.They have suffered severe financial losses over the past three years due to the same hardships that have hit other major players in the fishing industry: a decline in the demand for hake, erratic catches, rising operating costs and a fall in the average prices for their products.From 2002 to February this year, Lalandii accumulated losses amounting to N$31,1 million, while Northern Fishing Industries ran up losses of N$39,9 million, the High Court was informed when it was asked to order the winding-up of the companies.Their holding company, Namfish, which was a 58-year-old veteran of the Namibian fishing industry, did not escape the effects of the problems that Lalandii was experiencing either.Namfish was provisionally liquidated on June 13, and that provisional order was made final on July 4, ending the life of a company that had at one stage been listed on both the Johannesburg and the Namibian Stock Exchanges.Namfish in turn had a 3 202-ton hake quota for the current year’s fishing season.Where Namfish and Lalandii have been failing, competitors have stepped in to fill the gap that their passing left.This may signal a consolidation of the industry, with larger, healthier companies taking the opportunity to expand their bases by buying up assets that have become available because of erstwhile competitors’ demise.NovaNam, a member of the Pescanova Group whose 24 942-ton hake quota is the single largest quota of any company for the 2004/05 fishing season, last month agreed to buy Lalandii’s fish processing factory at Luederitz for N$26,1 million.Part of the deal clinched between NovaNam and Lalandii provisional liquidators Dave Bruni and Ian McLaren was that Lalandii’s hake fishing rights would also have to be transferred to the NovaNam nominee that was set to buy Lalandii’s assets, Mangetti Oya Fisheries, which after the takeover transaction has changed its name to Lalandii Holdings.With that deal having been done, the original Lalandii was left owning two fishing vessels, MFV Harvest Nicola and MFV Harvest Equihennois, which NovaNam expressly excluded from its takeover offer for Lalandii’s other assets.Bruni and McLaren yesterday got the court’s permission to sell those ships to another competitor of Lalandii and Namfish, Cadilu Fishing, for N$5 million.Cadilu is itself one of the larger hake quota holders in Namibia.The company’s quota amounts to 8 829 tons of hake for the 2004/05 season.In addition to getting the court’s permission to sell the two vessels to Cadilu, the provisional liquidators were also given the green light to let 29 residential properties that still belong to Lalandii.The properties will be rented by Lalandii Holdings, which will also be taking over the payment of rates and taxes, insurance and maintenance on the properties, for N$33 000 a month, the court was informed.Lalandii Holdings has furthermore indicated that it may ultimately wish to buy the properties, Bruni also stated to the court.Lalandii will remain in provisional liquidation until October 3, 2005.