The liquidators of Chemical Specialities (ChemSpec), a distributor and maker of industrial, decorative and automotive paint systems, were selling stock, assets and registering debtors, the group said on Friday. The company was placed into provisional liquidation on August 5, with the Durban High Court appointing joint provisional liquidators, after major shareholders decided not to inject additional capital into the business this year.
“It is premature to determine whether a dividend will be paid to concurrent creditors. A recovery for shareholders appears to be extremely unlikely,” ChemSpec said. “Shareholders are advised that the liquidation process is ongoing and that the trading in the shares of the company remains suspended.”
The group operated in both domestic and international markets. Former Grindrod chairman Ivan Clark was a significant shareholder, supporting a protracted turnaround process. In recent years, ChemSpec raised R528m through the market, substantially higher than its market capitalisation. ChemSpec financial director Jonathan Maehler was not able to respond to telephone calls and e-mails on Friday, requesting comment on the liquidation.
SA???s chemical sector has suffered production disruptions because of Eskom???s erratic power supply, while also facing growing imports.