Liquidators of uMhlanga's Pencil Club strive to generate R80 million from asset sales
The liquidators of the Pencil Club in uMhlanga are hoping to generate R80 million from the sale of its assets.
Image: File Picture
Financial experts leading the liquidation of the Pencil Club hope to generate close to R80 million through the sale of its assets.
The premier social networking club in uMhlanga entered liquidation proceedings after falling into financial difficulty.
Businesspeople, law firms and auditing companies were just some of the elite members in the club.
The company handling the liquidation process, Manci Knoop Financial Services, stated that they were assessing the scale of the organisation's debts. However, they believe about R80 million will be generated from the sale of the assets.
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A general circular addressed to creditors and clients, which The Mercury has seen, provided information on the process being undertaken.
A few months ago, The Mercury reported that the club was facing financial difficulties and could close, as it was facing a mountain of debt.
Approached for comment, Kurt Knoop of Manci Knoop Financial Services stated that they hoped to recover close to R80 million in total once the process was finalised.
'It is early days yet, and we are still trying to get a sense of what the company owes to creditors in total,' he said.
He added that there is a process underway at the moment where the movable property owned by the business is being auctioned, and there have been offers for some of the property. He stated that there will also be the sale of the immovable property.
The latest letter stated that the liquidators have taken control of the company's affairs and have approached the KwaZulu-Natal High Court in Pietermaritzburg, seeking an extension of their powers to sell the movable assets in the estate.
'In the interim, the business rescue practitioners of the Pencil Club, the owner of the immovable property and movable assets, proceeded with the disposal process of all assets by private tender, which closes on May 13, 2025,' said the letter.
'The liquidators will consider the offers for the movable assets and, in conjunction with the business rescue practitioner, make a decision on the sale thereof in the interest of the company and its creditors,' it continued.
The letter also informed creditors of claim documents that must be completed. The employee claims are also being processed, the letter noted.
A lifelong member of the club, speaking on condition of anonymity, said the development was damaging to the image of the city and disappointing. The member stated, 'As a life member of the Pencil Club Umhlanga, I wish to record my deep disappointment and unhappiness at the manner in which the club has been allowed to collapse into liquidation.
'This club stood as a landmark institution that brought great pride to Durban's business community. It was a space where banks, corporates, entrepreneurs, and professionals gathered to network and build relationships, with many members — myself included — having invested significant amounts in membership fees, in some cases up to R80 000 per annum.'
The member added that the demise of the club was as a result of the complete failure by the directors, custodians, and developers to protect the interests of the very members who built this institution. 'This was not just a club; it was a symbol of Durban's business spirit. Its collapse is a sad indictment (of) those who were entrusted to preserve its legacy and manage it responsibly,' said the member.
THE MERCURY
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