Absa accused of attempting to bully exotic car dealership into liquidation
The owners of Ballito-based SMD Group, which sells Ferraris, Porsches and Lamborghinis, dispute that it owes R400m
Absa, one of the country’s top four banks, has been accused by an exotic car dealership of trying to bully it into liquidation with claims that it owes it more than R400m. The owners of Ballito-based SMD Group, which sells Ferraris, Porsches and Lamborghinis, dispute the amount and said Absa had ignored an offer from a private equity firm to buy the company for almost R200m. SMD said the latest bank statement showed that it owed Absa only R157m. The bank has denied acting in bad faith in the matter and brought an urgent winding-up application in the high court in Durban a few days before Christmas. Judge Gregory Kruger refused to consider the matter, saying that it was not urgent. He ordered Absa to pay SMD’s costs. Approached for comment, Absa head of media relations Phumza Macanda said: "Absa denies any allegations of wrongdoing in their entirety, either by itself or on the part of its employees, and will respond fully to these allegations in the further conduct of the liquidation...
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