The trust lent and advanced a R20 million loan to the company under a written loan agreement. To secure the loan, a special notarial bond (SNB) was registered over the company’s vehicles, machinery and equipment. The company fell in arrears with its loan repayments and remained in breach of the loan agreement. The trust sought
Adrienne Hendricks
Resolutions are not enough: court rejects loan claim against deceased’s estate
By Izak Lessing, Camille Kafula & Adrienne Hendricks on
The liquidators of a company failed in a claim for a sum of money and interest thereon against the executor of the deceased’s estate arising from an alleged loan by the company to the deceased (who was a former director of the company) because there was no proof that the deceased agreed to be bound…
Misunderstanding no defence: guarantor bound by terms of guarantee
By Izak Lessing, Camille Kafula & Adrienne Hendricks on
The bank brought a claim against the respondent based on a guarantee signed by him wherein he irrevocably and unconditionally guaranteed to pay any amount owing by the close corporation (the debtor) as if he was the principal debtor.
The respondent disputed the sum claimed by the bank in the certificate of balance alleging that…
Court confirms lender’s right to enforce security despite business rescue
By Izak Lessing & Adrienne Hendricks on
This blog was co-authored by Adriaan Lourens, Candidate Attorney.
In May 2025, the high court confirmed a lender’s right to enforce a pledge and cession agreement over a member’s interest in a close corporation (the debtor), despite the debtor having entered business rescue.
The lender had advanced two loans to the debtor. To secure the…
Preserving creditor rights against sureties in business rescue plans
By Izak Lessing & Adrienne Hendricks on
In an April 2025 judgment, the High Court concluded that the defendant’s liability as a surety was not discharged by the release of the principal debtor under a business rescue plan (BR Plan). The BR Plan and the deed of suretyship were both clearly drafted to preserve the creditor’s right to claim from the surety.…