The Founder and CEO of the Arc Group of Companies, Norman Horn, says a supreme court judgement to place one of the group’s companies, ARC Systems into receivership will not be challenged.
On Monday last week, the Insolvency Division of the Supreme Court ruled that Arc Systems Limited is to go into official receivership for unpaid debts.
Mr. Kenneth Tomlinson, an insolvency practitioner, has been appointed as the interim receiver. He’s been instructed by the supreme court to track down the properties and assets belonging to Arc Systems.
The courts decision stems from a 2014 lawsuit filed by the company, Exclusive Holidays of Elegance Limited against Arc Systems for outstanding payments on an order of steel.
Arc Systems was ordered to pay Exclusive Holidays of Elegance Limited over $25-million in July 2017 but has failed to do so. Mr.Horn says the supreme court’s decision will not be challenged.
Mr. Horn says due to the 2008 financial crisis, the company’s shareholders decided to go into liquidation and says the crisis is responsible for the company’s financial woes.
Arc Systems has 90 days to produce audited financial statements covering the period 2014-2018. The parties in the case are to report back to the court on June 20.