Tycoons reach out-of-court settlement

Staff Writer | Wednesday August 25, 2010 00:00

 

Lekalake moved to the High Court seeking a declaration that Makgekgenene is insolvent and his property should be auctioned to recover the R11.5 million debt he is owed. In the out-of-court settlement, Makgekgenene acknowledges his indebtedness to Lekalake in the sum of P6,995,000. The repayment terms state that Makgekgenene will clear the debt in three instalments. The first instalment of P3 million will be paid on or before August 31, 2010. The second instalment of P1,997,500 is to be paid on or before September 30, 2010 while the last instalment of P1,997,500 is to be paid on or before October 30, 2010. 'All payments by the respondent to the petitioner shall be effected by a bank transfer to the petitioner's attorney's trust account,' the agreement says.

In the event that Makgekgenene defaults on the terms of the settlement, which has since been made an order of court, he will be liable for the entire balance immediately and Lekalake will be entitled to issue a warrant of execution.

The settlement agreement will result in Lekalake abandoning his application for insolvency. He will also withdraw a case he lodged with the police over dishonoured cheques issued to him by Makgekgenene.