ANSWERS TO THE COMMONLY ASKED QUESTIONS

  1. What is required from creditors in order to attend the 1st meeting of creditors and be granted access upon arrival?

A: Any creditor may attend, and you can tell the guard it is for a creditors meeting. However, due to the Covid-19 Level 3 Lockdown, I am not sure of the processes. The Meeting is on the 6th Floor, and there would be a limit of 50 people.

  1. What are the implications/risks for creditors if they are unable to attend this meeting?

A: There are no implications. As mentioned previously, the purpose of a First Meeting is to prove claims (I will not be lodging any claims at this meeting) and confirm the appointment of the Joint Liquidators.

  1. For creditors not living in JHB, or who live outside SA, what is required for them to be represented at this meeting?

A: They could appoint a representative to attend on their behalf. However, as mentioned, attendance is not mandatory and creditors will not be prejudiced in any way if they do not attend. The First Meeting of Creditors is a statutory requirement per the Insolvency Act.

  1. What will be expected of creditors at the meeting?

A: Only claims submitted will be considered by the Presiding Officer. No report will be filed and there will be no discussion as to the developments in the estate. Therefore, nothing is expected of the creditors.

  1. Is there a deadline for creditors to lodge and prove claims/ how is the deadline determined & communicated? (As per your response below)

A: If it is determined that there will be a distribution, claim forms will be sent to creditors and creditors will be advised to complete the claims. Ample time will be given.

  1. If claims cannot be proved due to FSCA non-compliance by Praesidium, what options do creditors have? (As per your latest circular & response below)
  2. This point has raised a lot of concern and creditors may be concerned they won’t have a claim even if money is recovered!

A: Anyone who invested money with Praesidium has a claim. The basis of the claim is to be determined and an appropriate claim form will be drafted and sent to creditors.