A liquidation case against the ANC Youth League was settled out of court on Wednesday (26/03/2014).
Johannesburg High Court Judge Phillip Boruchowitz discharged the provisional liquidation order made in November last year.
“It is noted that the application for winding up and the intervention application are withdrawn,” he said.
“There is no order as to costs.”
The original liquidation order against the league was applied for by Bloemfontein events company Z2 Presentations, who had originally been tasked with running the ANCYL’s 2008 national conference in the Free State.
The conference left the company R15 million out of pocket after the league did not pay its bill.
A hotel, trading as Palanquin Hospitality Management and based in Bloemfontein, claimed R1.5m from the ANCYL, lawyer Steven van Rensburg said during a new application brought to court in January.
Palanquin, which is in liquidation, provided accommodation for the conference delegates.
The league was on Wednesday scheduled to explain why an order for its provisional liquidation should not be made final.
After a short adjournment, all three parties informed Boruchowitz they had agreed on an out of court settlement.
Phillip Patlansky, for Z2 Presentations, would not disclose the settlement amount to reporters in the courtroom.
“It is a substantial amount which is commercially acceptable. Proceeding with the liquidation was going to cost millions.”
ANCYL national convenor Mzwandile Masina also refused to disclose the amount of the settlement.
“We want to keep it confidential, as we all signed a confidentiality clause. We are relieved that the matter is resolved,” he told reporters.
He said he hoped the organisation would not get into a similar situation.
“We are not aware of any other debt at this point… We are not expecting any further legal challenges.”
He said he was positive the African National Congress would be happy that the matter was dealt with.
“We are happy that the youth league can conduct its business. This was our biggest hurdle, after this nothing will stop us,” Masina said.
“We are just focusing our energies on the upcoming elections.” – Sapa