CAPS United faces liquidation

By Daniel Nemukuyu
HARARE – CAPS United Football Club faces collapse after the club’s two former directors issued them with a three-week notice to approach the High Court seeking liquidation over failure to pay off debts running into millions of dollars.

Advocate Lewis Uriri (former board member responsible for corporate and secretarial affairs) and Mr Nhamo Tutisani (former board member responsible for commercial affairs) yesterday served CAPS United with the notice, arguing that the club had failed to clear debts.

The two injected funds into the club during their tenure as directors and the club owes them a combined $143 000.
CAPS United faces liquidation
Farai Jere tops the list of creditors as he is owed close to $2 million. However, CAPS United have acknowledged owing Jere $1,4 million, which is part of the debt.

The club have also acknowledged owing Adv Uriri $25 695 and Mr Tutisani $118 000.

In a letter dated April 7 2015 that was served on CAPS United yesterday by the two former directors’ lawyers, Wilmot and Bennett, the pair argued that the club was now insolvent and that provisional liquidation was the best option under the circumstances.

“Our clients consider that Caps United Football Club P/L is insolvent in that it is unable to pay its debts.

“We demand with the provisions of Section 205 (a) of the Companies Act in mind, the payment of the above said sums ($143 000 for the duo) within three weeks of the receipt of this letter, failing which our clients shall forthwith petition the High Court for the liquidation of CAPS United Football Club with a view that its sole asset, CAPS United Football Club (including the PSL franchise) be sold to satisfy the debts,” reads part of the letter.

Section 205 (a) of the Companies Act reads: “A company shall be deemed to be unable to pay its debts-

a) If a creditor, by cession or otherwise, to whom the company is indebted in a sum exceeding one hundred United States dollars then due, has served on the company a demand requiring it to pay the sum so due by leaving the demand at its registered office and if the company has for three weeks thereafter neglected to pay the sum or to secure or compound for it to the reasonable satisfaction of the creditor…”

The lawyers indicated that they had identified a qualified provisional liquidator who was prepared to handle the affairs of the company.

“We advise, for the avoidance of doubt, that Mr Bhudhama Chikamhi has agreed to act as provisional liquidator in the event that the company is placed under provisional liquidation,” reads the letter.

In the event that the sale of Caps United and its franchise do not fully satisfy the debt, the lawyers said all directors and officers of the club shall be liable.

“In the event that the sale of the company’s assets does not meet the debts owed, we advise that every director and officer of the company shall be a contributory in terms of the law,” the lawyers said.

On June 30 2014, Caps United chairman Mr Twine Phiri and the then secretary Adv Uriri, on behalf of Caps United, acknowledged that the club owed Mr Jere $1,4 million.

Part of the acknowledgment signed by Adv Uriri and Mr Phiri reads:

“…That the debt owed to Farai Jere as per the said financial records, more specifically One Million Four Hundred Thousand United States Dollars (US$1 400 000) be and is hereby acknowledged, to be settled on such terms and conditions as will be agreed with him.”

The Herald understands that the debt was not paid and is now around $2 million.

On February 5 2014, Morton Dodzo, on behalf of Caps United, acknowledged receiving $18 500 from Adv Uriri, and Dr Modecai Sachikonye signed as a witness.

On April 25 last year Adv Uriri also advanced $3 000 to the club to assist in paying players’ salaries and to finance a trip to Zvishavane for a match against FC Platinum.

Caps United on April 15 2014 received $2 000 from Adv Uriri, and Morton Dodzo received and signed for it together with another witness from the club.

Adv Uriri extended to the club $1 000 on February 13 last year for payment of the head coach’s contract/settlement fee.

Adv Uriri also paid head coach Taurayi Mangwiro’s two-month salary of $3000 on behalf of Caps United but the debt is yet to be settled.

The club also received $500 on March 20 2014 for payment of Gerald Phiri’s salary balance for February 2014 and $535 for payment of a debt to Beta Balls and fuel.

Caps United also received $1 860 from Adv Uriri, which was used to purchase an air ticket for the club’s official and payment of some players’ outstanding salaries on January 15 last year. The Herald

0 comments :

Post a Comment

Contact Form

Name

Email *

Message *