News

TO ALL AFFECTED PERSONS

10 JUNE 2013

Dear Sir / Madam

HIGHVELD SYNDICATION 15 - 22 LIMITED (“ALL UNDER BUSINESS RESCUE”)
("THE HS COMPANIES")

UPDATE ON THE BUSINESS RESCUE PROCESS BY THE BUSINESS RESCUE PRACTITIONER (“BRP”)

1. The business rescue process in respect of the HS Companies is ongoing and it seems necessary to remind affected persons and interested parties of the background to the matter and to clarify certain issues which have been addressed in communications over many months.
2. It is apparent that certain individuals who purport to be “experts” continuously spread deliberate falsehoods (often perpetuated by the media) in what appears to be an attempt to promote their own hidden agendas.
3. The HS Companies were placed under Business Rescue in September 2011 following a dispute between Zephan Properties Proprietary Limited (“Zephan”) and Bosman & Visser Proprietary Limited (“B&V”), after the South African Reserve Bank (“SARB”) appointed inspectors to investigate the activities of Pickvest Syndications Proprietary Limited (“Pickvest“) in September 2008. Zephan cancelled the agreements with B&V and consequently the head lease agreement between them and the HS Companies following a dispute between B&V and Zephan regarding the payment for properties and allegations that B&V were conducting the “business of a bank”.
4. Investors should keep in mind that the cloud of the SARB investigations over this group and the entire property syndication industry had existed for approximately 3 years before the business rescue of The HS Companies.
5. As a consequence of the B&V dispute and other problematic issues in Pickvest, the HS Companies found themselves in a position where they were unable to service interest to their investors since the early part of 2011.
6. As a result a very real risk emerged that B&V and in turn the HS companies might be liquidated which would have had catastrophic results for the investors in the HS Companies.
7. In March 2011, some six months before this writer got involved in the affairs of the HS Companies as the Business Rescue Practitioner (“BRP”), a meeting was held between all the stakeholders and a solution was reached. In terms of this plan, investors were to receive
interest at a reduced rate, and receive their full capital at the end of a 5 year period through a new entity, Orthotouch Limited (“Orthotouch”). The plan was subject to the consent of the shareholders.
8. The Agreement did not materialise due to delays which hindered the process of getting shareholder consent. An application was brought to liquidate HS19, and since the whole HS Group was under threat of liquidation, the HS Companies were placed under Business Rescue with this writer as the duly appointed BRP.
9. In terms of the relevant provisions of the Companies Act 71 of 2008 (“The Companies Act”) pertaining to business rescue proceedings, the BRP was afforded a very short period of time within which to investigate the matter and to submit a Business Rescue Plan (“the Plan”).
10. To this end the writer harnessed the assistance of the attorney representing the HS Companies, Mr Connie Myburgh, the Non-Executive Directors Messrs Des Hudson and FP van Outshoorn, the Executive Directors Messrs Morkel Steyn and Ben Van Der Linde and a Creditors’ Committee comprised of financial advisors and investors.
11. With the assistance of these parties the writer managed to renegotiate an agreement with Orthotouch and to publish the Plan on 30 November 2011. The Plan was adopted by an overwhelming majority of shareholders in all the HS Companies on 14 December 2011.
12. Although a number of problems have been experienced, interest payments to date have been maintained not only since the implementation of the Plan, but since the original conclusion of the Orthotouch Deal in March 2011. Save for HS22, interest payments are only 1 (one) month in arrears and every effort is being made to eradicate even that in the near future.
13. In addition, the asset value of the HS Companies has been improved despite said difficulties, and Orhtotouch is working towards its objective which is to service interest and repay capital.
14. From the time that the writer became involved in the affairs of the HS Companies, it became apparent that there had been sustained efforts by various persons to liquidate the HS Companies long before the original Orthotouch transaction. The intent of those individuals is clearly to lay their hands on the assets of the HS Companies through liquidators by any means and without any care or consideration for the devastating loss and effect it would have on investors.
15. Whilst one had hoped that the formal adoption of the Plan would have thwarted the efforts of those individuals, it has not done so, In fact, the closer Orthotouch gets to resolving the problems of the HS investors, the more intense and underhanded their efforts become.
16. It is trite in our law that a director serves the best interests of a company and its stakeholders as a whole and not necessarily the singular objectives of the shareholder/s who appoint him. There have been accusations that the writer has a conflict of interest, since he serves both as a director of Orthotouch and as the BRP. Nothing could be further from the truth, as the
objectives of Orthotouch are directly aligned with the objectives outlined in the Plan. Suggestions in this regard emanate from the very people referred to above who seek to derail the Plan to suit their own ends.
17. What has become of particular concern lately, is that certain people who were involved in engaging with the BRP and Mr Connie Myburgh initially have now surfaced in the ranks of those making threats and seeking to derail the process. Some of these people seem credible, due to the position they might have held or the role they might have played in the past. We do not think they are credible at all!
18. The purpose of this letter is to:
18.1. reassure investors that everything is being done to best serve their interests and to realise the objectives of the Plan as adopted;
18.2. caution investors against taking advice from the individuals referred to above who (despite what they may say) have no concern for the well-being of investors, but seek to enrich themselves instead; and
18.3. suggest to investors that they enquire from these individuals (if they are approached by them) why they make allegations and allude to issues which they must have known about prior to the Business Rescue.
19. Investors are kindly requested to communicate any queries regarding the above in writing.

Yours faithfully,

J F KLOPPER

Business Rescue Practitioner: Highveld Syndication Companies


AAN ALLE GEAFFEKTEERDE PERSONE
10 JUNIE 2013

Geagte Meneer/Me.

HIGHVELD SYNDICATION 15 - 22 BEPERK (“ALMAL ONDER ONDERNEMINGREDDING”)
("DIE HS-MAATSKAPPYE")

NUUSFLITS OOR DIE ONDERNEMINGREDDINGSPROSES DEUR DIE ONDERNEMINGREDDINGSPRAKTISYN (“ORP”)

1. Die ondernemingreddingsproses ten opsigte van die HS-maatskappye gaan voort, maar dit blyk nodig te wees om geaffekteerde persone en belanghebbende partye te herinner aan die aanloop tot die gebeure, en om sekere kwessies duidelik te maak wat reeds deur baie maande se korrespondensie oorgedra is.
2. Dit blyk dat sekere individue wat hulleself as “kenners” voordoen voortdurend kwaadwillige leuens versprei (waarop die media dikwels voortborduur) in ’n poging om skynbaar hul eie versteekte agendas te bevorder.
3. Die HS-maatskappye is in September 2011 onder ondernemingredding geplaas ná ’n dispuut tussen Zephan Properties (Eiendoms) Beperk (“Zephan”) en Bosman & Visser (Eiendoms) Beperk (“B&V”), nadat die Suid-Afrikaanse Reserwebank (“SARB”) in September 2008 ondersoekbeamptes aangestel het om die bedrywighede van Pickvest Syndications (Eiendoms) Beperk (“Pickvest“) te ondersoek. Zephan het die ooreenkomste met B&V – en gevolglik die hoofhuurooreenkoms tussen hulle en die HS-maatskappye – gekanselleer ná ’n dispuut tussen B&V en Zephan oor betaling vir eiendomme en aantygings dat B&V “banksake bedryf”.
4. Beleggers moet in gedagte hou dat die wolk van die SARB-ondersoek al sowat 3 jaar vóór die ondernemingredding van die HS-maatskappye oor hierdie groep – en oor die hele eiendomsindikasiebedryf – gehang het.
5. As gevolg van die B&V-dispuut en ander probleemkwessies in Pickvest, het die HS-maatskappye hulleself in ’n posisie bevind waar hulle van vroeg in 2011 af nie in staat was om rente aan hul beleggers te betaal nie.
6. Gevolglik was daar ’n goeie kans dat B&V – en op hul beurt die HS-maatskappye – gelikwideer kan word, wat katastrofiese gevolge vir beleggers in die HS-maatskappye sou hê.
7. In Maart 2011, sowat ses maande voordat die skrywer hiervan as die Ondernemingreddings-praktisyn (“ORP”) betrokke geraak het by die HS-maatskappye se sake, het al die belanghebbers ’n vergadering gehou en op ’n oplossing besluit. Volgens hierdie plan sou beleggers teen ’n verlaagde koers rente ontvang en hul volle kapitaal ná 5 jaar via ’n nuwe entiteit, Orthotouch Beperk (“Orthotouch”), terugkry. Die plan was onderhewig aan aandeelhouertoestemming.
8. Die Ooreenkoms is nie verwesenlik nie weens vertragings wat die proses om aandeelhouer-toestemming te kry belemmer het. ’n Aansoek is ingedien om HS19 te likwideer, en aangesien die hele HS-groep gevaar geloop het om gelikwideer te word, is die HS-maatskappye onder ondernemingredding geplaas, en die skrywer is formeel aangestel as die ORP.
9. Die ORP het kragtens die betrokke bepalings van die Maatskappywet, 2008 (Wet 71 van 2008) (“die Maatskappywet”) wat betrekking het op ondernemingredding baie min tyd ontvang om die saak te ondersoek en ’n Ondernemingreddingsplan (“die Plan”) voor te lê.
10. Die skrywer het dus die hulp van die prokureur wat die HS-maatskappye verteenwoordig, mnr. Connie Myburgh, die Nie-uitvoerende Direkteurs, mnre. Des Hudson en F.P. van Outshoorn, die Uitvoerende Direkteure, mnre. Morkel Steyn en Ben Van Der Linde, en ’n Krediteurekomitee wat uit finansiële adviseurs en beleggers bestaan, ingeroep.
11. Die skrywer het met hierdie partye se hulp daarin geslaag om ’n nuwe ooreenkoms met Orthotouch te onderhandel en die Plan op 30 November 2011 te publiseer. Die Plan is op 14 Desember 2011 deur die oorgrote meerderheid aandeelhouers in al die HS-maatskappye goedgekeur.
12. Hoewel ’n aantal probleme ervaar is, is rentebetalings tot op hede volgehou – nie net van die Plan se inwerkingstellingsdatum af nie, maar van die oorspronklike ooreenkoms met Orthotouch se datum in Maart 2011 af. Buiten HS22, is rentebetalings slegs 1 maand agterstallig, en alles word in die stryd gewerp om die agterstalligheid in die nabye toekoms te delg.
13. Daarby het die batewaarde van die HS-maatskappye verbeter ten spyte van die genoemde probleme, en Orthotouch werk daaraan om sy doelwit – om rente te betaal en kapitaal terug te betaal – te bereik.
14. Vandat die skrywer by die HS-maatskappye se sake betrokke geraak het, het dit geblyk dat verskeie persone al van vóór die Orthotouch-transaksie af volhou met pogings om die HS-maatskappye se likwidering te bewerkstellig. Hierdie individue het duidelik ten doel om die bates van die HS-maatskappye op enige wyse deur likwidateurs in die hande te kry, sonder om die geweldige verlies wat dit vir beleggers sal inhou in ag te neem.
15. Hoewel daar gehoop was dat die formele aanvaarding van die Plan sulke pogings sou gefnuik het, blyk dit nie die geval te wees nie. Trouens, hoe nader Orthotouch daaraan kom
om HS-beleggers se probleme op te los, hoe meer intens en onderduims raak hierdie groep se pogings.
16. Dit is ’n bekende beginsel in ons wetgewing dat ’n direkteur in die belang van ’n maatskappy en sy belanghebbers moet optree, en nie noodwendig slegs die doelwitte van die aandeelhouer/s wat hom aanstel nie. Daar was beskuldigings dat die skrywer botsende belange het, aangesien hy as 'n direkteur van Orthotouch én as die Ondernemingreddingspraktisyn dien. Dit is heeltemal onwaar, aangesien Orthotouch se doelwitte perfek by die doelwitte wat in die Plan uiteengesit is, pas. Hierdie verdagmakery kom van die mense wat hierbo genoem is, wat die Plan wil laat ontspoor om hul eie doelwitte te bereik.
17. ’n Kommerwekkende verwikkeling wat onlangs kop uitgesteek het, is dat sekere mense wat aanvanklik met die ORP en mnr. Connie Myburgh geskakel het, nou onder diegene tel wat dreigemente maak en die proses probeer kelder. Party van hierdie persone kom geloofwaardig voor danksy die posisies wat hulle voorheen beklee het en die rol wat hulle in die verlede gespeel het. Ons beskou hulle egter glad nie as geloofwaardig nie!
18. Die doel van hierdie brief is:
18.1. om beleggers gerus te stel dat alles in die stryd gewerp word om hul belange te dien en om die doelwitte van die Plan wat aanvaar is, te bereik;
18.2. om beleggers teen die genoemde individue se advies te waarsku, aangesien hulle (ten spyte van wat hulle voordoen) nie beleggers se welstand op die hart dra nie, maar hulleself probeer verryk; en
18.3. om aan beleggers voor te stel dat hulle, indien hulle genader word, hierdie individue moet vra waarom hulle aantygings maak en kwessies ophaal waarvan hulle al vóór die Ondernemingredding geweet het.
19. Beleggers word vriendelik versoek om enige navrae in hierdie verband skriftelik aan ons te rig.

Die uwe


J F KLOPPER

Ondernemingreddingspraktisyn: Highveld Syndication-maatskappye



4 June 2013

Dear Investor

ORTHOTOUCH LIMITED (“ORTHOTOUCH”) & HIGHVELD SYNDICATIONS 15 – 22 LIMITED (“UNDER BUSINESS RESCUE”) (“THE HIGHVELD SYNDICATION COMPANIES” OR “THE HS COMPANIES” OR “HS15-22”)

1 Shortly after my last communication to you, the interest payments in HS15 to HS21 were brought up to date to the end of February 2013, and half the interest to that date for HS22 was paid. I am pleased to advise that interest payments on HS15 to 21 up to 31 March 2013 (which was due and payable on 7 April 2013) is up to date and we are working towards bringing interest payments completely up to date in all the HS Companies .
2 The impending listing of a new entity (“Listco”) has caused some confusion and even some consternation amongst the investors in the HS Companies (“the HS Investors”). It has also presented the persons seeking our ruin (“detractors”) with an opportunity to try and further their malevolent intentions. Consequently, we have had comments and questions such as the following:
 When will I get my shares in the listed company?
 If the listing happened in April, why have I not been paid?
 They have reduced our assets to advance their listing.
 The listing is a ploy to buy time and will never happen.
3 It is therefore prudent that I again explain the listing and how it impacts on Orthotouch and benefits all the HS Investors.
4 It is important to clarify at the outset that it is not the HS Companies or Orthotouch which is in the process of listing, but Listco.
5 At the risk of repeating what was clearly stated in the Business Rescue Plan, and explained in various communications since, here follows a synopsis of events:
5.1 The HS Companies and related companies got into financial difficulty during the early part of 2011 as a result of which the continued payment of interest to investors became a problem;
5.2 The difficulties had come about primarily as result of a dispute relating to the payment of funds on account of properties sold to a company known as Bosman & Visser (Pty) Limited (“B&V”) by Zephan Properties (Pty) Limited (“Zephan”), as was fully explained in the Business Rescue Plan;
5.3 A great risk existed that B&V might be liquidated, which could in turn have led to the liquidation of the HS Companies and would definitely have led to substantial loss of interest and capital to the HS Investors;
5.4 In March 2011 an agreement was concluded between all the roleplayers in terms whereof a shelf company, Orthotouch Limited, would acquire (as one indivisible transaction) all the properties from the HS Companies on the basis that the purchase price would be paid at the end of a 5 year period and interest, albeit at a reduced rate, would be paid to the HS Investors on a monthly basis;
5.5 This plan constituted a bail-out to avoid the devastating losses which would have resulted in the event of a liquidation;
5.6 Although a liquidation could never have been to the benefit of the HS Investors the detractors with their self-serving agendas tried to take that route. In fact, they persist in their endeavours to derail the process to this day;
5.7 The “Orthotouch deal” was subject to approval from the then Securities Regulation Panel and the HS Investors in General Meeting;
5.8 Before approval could be obtained, an application for the liquidation of HS 19 was brought and in September 2011, to avoid liquidation and its calamitous consequences, the directors of the HS Companies placed them under Business Rescue Proceedings;
5.9 Mr Hans Klopper was appointed as Business Rescue Practitioner (“the Practitioner”) and with a committee comprised of advisors and investors negotiated a deal with Orthotouch substantially on the same terms as the “Orthotouch deal”;
5.10 That transaction was presented by the Practitioner to the HS Investors on 14 December 2011 and was sanctioned by an overwhelming majority;
5.11 Despite the obvious benefits to the HS Investors the detractors have not ceased in their endeavours which together with the prevailing weak economy have made it difficult for Orthotouch to maintain regular payments on time;
5.12 This notwithstanding, the HS Investors have been paid all their interest in terms of the Orthotouch deal for a period of 26 months. To date an amount well in excess of R500,000,000.00 (five hundred million rand) has been paid to the HS Investors.
6 In terms of the Business Plan which forms a part of the Business Rescue Plan, it was always envisaged that Orthotouch would need freedom to develop, sell, purchase and redevelop properties in order to grow the Property Portfolio value sufficiently to pay the investors their capital. There has been constant interference and innuendo from the detractors with regard to Orthotouch’s dealings, which has hindered the ability of Orthotouch to optimise the portfolio and obtain the necessary funding. This notwithstanding, the directors of Orthotouch are proud to announce that the asset value has not diminished.
7 The proposed listing of Listco created an opportunity for Orthotouch to dispose of a number of properties which were difficult to manage and to convert a portion of its assets to cash or shares in a listed company, thereby increasing its liquidity and ability to grow its portfolio.
8 The benefits of the Listco deal, which will result in interest being brought and kept up to date and a better prospect for succeeding to attain the end-goal, clearly does not suit the detractors.
9 Lately there has been more activity from the detractors and an increased attempt to motivate investors to adopt an aggressive stance towards Orthotouch.
10 HS Investors are requested to look at the bigger picture and to compare the results so far with the consequences which would have followed, had the detractors been successful.
11 The listing process itself has been delayed for a number of reasons, not least of all the change in legislation, but is being pursued and will be finalised. We are advised that the target date is around the end of July 2013.
12 Until that happens, we will continue with our best endeavours to bring payments up to date and to keep you as fully informed as possible.
13 In closing , I would ask you to bear in mind that there are in excess of 18 000 investors in the HS Companies which makes it difficult for all your queries to be dealt with telephonically. I would therefore ask you (as far as possible) to let us have your queries in writing by post to Postnet Suite 1132, Private Bag X9, Benmore, 2010 or e-mail to theo@4sytebusiness.co.za.
14 We thank you for your patience and cooperation.

Yours sincerely

CAS DE VILLIERS

Chairman


4 Junie 2013

Geagte Belegger

ORTHOTOUCH BEPERK (“ORTHOTOUCH”) & HIGHVELD SYNDICATIONS 15 – 22 BEPERK (“ONDER ONDERNEMINGREDDING”) (“DIE HIGHVELD SYNDICATION-MAATSKAPPYE” OF “DIE HS-MAATSKAPPYE” OF “HS15-22”)

1 Kort ná my laaste korrespondensie aan u is die rentebetalings in HS15 tot HS21 tot einde Februarie 2013 gedoen en die helfte van die rente vir HS22 tot op daardie datum betaal. Ek is bly om u mee te deel dat rentebetalings vir HS15–21 vir 31 Maart 2013 (wat op 7 April 2013 betaalbaar was) nou op datum is, en dat ons daaraan werk om die rente vir al die HS-maatskappye heeltemal op datum te bring.
2 Die notering van ’n nuwe entiteit (“Listco”) wat voor hande is, het ’n mate van verwarring en selfs ’n geskarrel onder beleggers in die HS-maatskappye (“die HS-beleggers”) veroorsaak. Dit het ook die persone wat graag wil hê dat ons moet misluk (“die saboteurs”) die geleentheid gebied om hul duister agenda te probeer bevorder. Gevolglik het ons vrae en kommentare soos die volgende ontvang:
 Wanneer gaan ek my aandele in die genoteerde maatskappy ontvang?
 Indien die notering in April plaasgevind het, hoekom is ek nog nie betaal nie?
 Hulle het ons bates verminder om hul notering te bevorder.
 Die notering is ’n vertragingstaktiek en sal nooit realiseer nie.
3 Dit is dus nodig dat ek opnuut die notering, die wyse waarop dit Orthotouch beïnvloed en al die HS-beleggers bevoordeel weer uiteensit.
4 Dit is belangrik om dit vanuit die staanspoor duidelik te maak dat dit Listco is – en nie die HS-maatskappye of Orthotouch nie – wat besig is om genoteer te word.
5 Die opsomming van gebeure wat volg is duidelik in die Ondernemingreddingsplan uiteengesit en in verskeie korrespondensiestukke sedertdien verduidelik:
5.1 Die HS-maatskappye en verwante maatskappye het vroeg in 2011 finansieel in die moeilikheid beland en kon nie daarin slaag om vol te hou met rentebetalings aan beleggers nie;
5.2 Die uitdagings het hoofsaaklik ontstaan weens ’n dispuut oor die betaling van fondse vir eiendomme wat Zephan Properties (Edms) Bpk (“Zephan”) aan ’n maatskappy genaamd Bosman & Visser (Edms) Bpk (“B&V”) verkoop het, soos wat die Ondernemingreddingsplan omvattend verduidelik het;
5.3 ’n Groot risiko het bestaan dat B&V moontlik gelikwideer koan word, wat op sy beurt tot die likwidering van die HS-maatskappye sou lei, wat beslis ’n wesenlike verlies aan rente en kapitaal vir die HS-beleggers sou beteken;
5.4 In Maart 2011 is ’n ooreenkoms tussen al die rolspelers beklink wat behels het dat ’n rakmaatskappy, Orthotouch Beperk, al die HS-maatskappye se eiendomme (as een onverdeelbare eenheid) sou bekom,
met dien verstande dat die koopsom aan die einde van ’n vyfjaartydperk betaal sou word, en dat rente – wel teen ’n verlaagde koers – maandeliks aan die HS-beleggers betaal sou word;
5.5 Hierdie plan was ’n reddingspoging om die dramatiese verliese te voorkom wat sou volg indien die maatskappye gelikwideer moes word;
5.6 Hoewel likwidering geensins die HS-beleggers sou bevoordeel nie, het die saboteurs weens eiebelang dit met hul agenda probeer bewerkstellig. Trouens, hulle probeer steeds die proses belemmer;
5.7 Die “Orthotouch-transaksie” was onderhewig aan goedkeuring deur die destydse Paneel oor Sekuriteiteregulering en ’n Algemene Vergadering van die HS-beleggers;
5.8 Voordat goedkeuring verkry kon word, is ’n aansoek om likwidering van HS19 ingedien, en in September 2011 het die HS-maatskappye se direkteure die maatskappye onder Ondernemingredding geplaas om die katastrofiese gevolge van likwidering te voorkom;
5.9 Mnr Hans Klopper is as die Ondernemingreddingspraktisyn (“die Praktisyn”) aangestel; met die hulp van ’n komitee wat uit adviseurs en beleggers bestaan het hy ’n transaksie met Orthotouch onderhandel wat basies op dieselfde as die oorspronklike “Orthotouch-transaksie” neerkom;
5.10 Die Praktisyn het daardie transaksie op 14 Desember 2011 aan die HS-beleggers voorgelê, en dit is deur die oorgrote meerderheid goedgekeur;
5.11 Die saboteurs het ten spyte van die ooglopende voordele vir HS-beleggers volgehou met hul pogings om die proses te kelder. Dít en die sukkelende ekonomie het dit vir Orthotouch moeilik gemaak om rente tydig en gereeld te betaal;
5.12 Desnieteenstaande het HS-beleggers 26 maande lank al hul rente ingevolge die Orthotouch-transaksie ontvang. Tot op hede is ’n bedrag van heelwat meer as R500,000,000.00 (vyf honderd miljoen rand) aan HS-beleggers betaal.
6 Ingevolge die Sakeplan, wat deel van die Ondernemingreddingsplan vorm, is altyd in die vooruitsig gestel dat Orthotouch die vryheid moet hê om eiendomme te ontwikkel, te verkoop, aan te koop en te herontwikkel om die Eiendomsportefeulje se waarde genoegsaam te laat toeneem om beleggers se kapitaal aan hulle te betaal. Daar was voortdurend inmenging en verdagmakery deur die saboteurs ten opsigte van Orthotouch se handelinge, wat Orthotouch se vermoë om die portefeulje te optimaliseer en die nodige befondsing te verkry, belemmer het. Desnieteenstaande kan die Orthotouch-direkteure met trots aankondig dat die batewaarde gehandhaaf is.
7 Die voorgestelde notering van Listco het die geleentheid geskep vir Orthotouch om ’n aantal eiendomme van die hand te sit wat moeilik was om te bestuur, en om ’n gedeelte van sy bates in kontant of aandele in ’n genoteerde maatskappy om te sit, wat likiditeit verhoog en die maatskappy in staat stel om sy portefeulje te vergroot.
8 Al beteken die Listco-transaksie dat rentebetalings op datum gebring sal kan word en dat daar ’n beter kans is om die einddoel te bereik, pas dit duidelik nie die saboteurs nie.
9 Die saboteurs het onlangs meer aktief geraak en daadwerklike pogings aangewend om beleggers vyandiggesind teenoor Orthotouch te maak.
10 HS-beleggers word versoek om die geheelbeeld in gedagte te hou en die resultate wat tot dusver behaal is te vergelyk met dit wat sou gebeur het as die saboteurs in hul doel geslaag het.
11 Die noteringsproses self is om verskeie redes vertraag, veral weens die veranderde wetgewing, maar dit is steeds aan die gang en word tans gefinaliseer. Die jongste teikendatum wat ons ontvang het, is ongeveer teen die einde van Julie 2013.
12 Totdat dit gebeur, sal ons voortgaan om alles in die stryd te werp om die betalings op datum te bring en u so volledig moontlik ingelig te hou.
13 Ten slotte vra ek u om in gedagte te hou, dat daar meer as 18 000 beleggers in die HS-maatskappye is, wat dit moeilik maak om al u navrae telefonies te hanteer. Ek vra dus dat u (sover moontlik) u navrae skriftelik per pos rig aan Postnet Suite 1132, Privaatsak X9, Benmore, 2010 of dit e-pos na theo@4sytebusiness.co.za.
14 Dankie vir u geduld en samewerking.

Die uwe

CAS DE VILLIERS

Voorsitter


Dear Investor,

Several months ago I was appointed as a non-executive director of Orthotouch Limited and accepted the
Chairmanship of the company.

On 14 December 2011 the vast majority of investors in the Highveld Syndication Companies (more than 99% of those present and voting) voted in favour of a Business Rescue Plan in terms of which the properties and rights to properties were acquired from the Highveld Syndication Companies by the company.

The Business Rescue Plan allows for investors to be repaid their capital investments in 5 years, whilst receiving monthly interest calculated at 6% per annum in the first year, escalating by .25% per annum thereafter. The Plan was accepted as opposed to running the very real risk of losing a large percentage of investors’ money in the Highveld Syndication Companies, pretty much emulating the tragic story of other property syndications, in the event of liquidation.

The company, in cooperation with Mr Hans Klopper, the Business Rescue Practitioner, is dedicated to the enormous challenge of securing the investment of thousands of investors, many of whom are pensioners. The scenario of this challenge to some seems unrealistic with reference to expected and projected returns on investment in an ever changing and vulnerable global financial environment. We have witnessed what happened to the markets towards the end of 2007 with the subsequent impact on world economies. We all know now that no surprises can be ruled out in uncertain financial circumstances, reeking havoc that often cannot be controlled or contained.

I accepted the Chairmanship of Orthotouch without access to all the detailed information regarding the history of events pertaining to the Highveld Syndication Companies and therefore cannot vouch for anything that transpired prior to where we are now.

What I do know and have witnessed is a concerted effort of everybody at the company to deliver on undertakings of the repayment of capital and interest to more than 18 000 investors.

I became acutely aware of efforts to obtain financing which would have addressed immediate problems by October last year, but which were covertly sabotaged at the last minute by certain individuals pretending to have the interest of investors at heart while they are constantly busy, at the peril of investors, to, cast suspicion on the handling of affairs by the company and all involved in their own interests.

Tenancies are presently down, maintenance costs high and the company has not been able to obtain funding which results in delays in paying interest timeously. The interest has nevertheless been paid (albeit late) since March 2011 (when Orthotouch first entered the arena) and is only minimally in arrears. The company continues on a daily basis to address the cash flow dilemma currently experienced.

In my humble view a mistake was made initially to target precise payment dates for interest, based on the then tangible signs of financing which was considered secured. I strongly conveyed this point of view at my first directors’ meeting in respect of the company. Unfortunately, this aspect is also used by the group of instigators referred to above to further instill suspicion with investors.

The sale of a part of the company’s Portfolio into the proposed listing of Accelerator Property Fund will create positive cash flow both to ensure regular payments and the increase in capital. As far as I can establish, great strides have been made to realize this. Obviously, the more the listing becomes a reality, the more concerted the efforts of the instigators to sabotage the process.

I suggested that a circular be sent to shareholders to explain the difficult, but not desperate situation, and allay suspicions of any malpractices with reference to financial management of affairs. Up to now, albeit only a couple of months as Chairman, I am not aware of any occurrences to warrant suspicion regarding the financial management of your interests.

Whatever transpires, one thing I know and know well after many lessons through a lot of years in life in general and business in particular, that the worst thing one can do is to instigate rumors to the detriment of one’s own interests before it can be proved that irregularities are taking place and red flags are visible. Until this becomes clear to me and the others recently involved, we shall with dedication support all efforts of the company to honour its obligations to investors and we shall improve on communication with you in more efficient and frequent manner.

I urge you to not to lose heart and I assure you that no efforts are being spared in on-going attempts to erase the backlog in interest due to you. Meanwhile the listing is pursued vigorously and if successful, this will secure funds to bring obligations up to date.

Apart from confidentiality issues which are paramount in all businesses, certain information is not freely available as a number of court actions are being instituted between the company and the persons associated therein and the instigators and their connections.

Wishing you well and trusting that all of us will be able to soon look back on this chapter with restored confidence in all those involved to safeguard investments and deliver on your expectations.

Yours faithfully
Cas de Villiers
Pretoria

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6 March 2013

Geagte Belegger,

Ek is ’n paar maande gelede as ’n nie-uitvoerende direkteur van Orthotouch Beperk aangestel, en het die Voorsitterskap van die maatskappy aanvaar.

Op 14 Desember 2011 het verreweg die meeste beleggers in die Highveld Syndication-maatskappye (meer as 99% van die teenwoordiges wat gestem het) ten gunste van ’n Ondernemingreddingsplan gestem. Ingevolge hierdie plan het die maatskappy die eiendomme en reg daartoe by die Highveld Syndication-maatskappye gekoop.

Die Ondernemingreddingsplan stel beleggers in staat om hul kapitaalbeleging binne 5 jaar terug te kry en intussen rente te verdien. Die rente word bereken teen 6% per jaar in die eerste jaar, en styg daarna met .25% per jaar. Die Plan is aanvaar bó die alternatief om waarskynlik in die geval van ’n likwidasie ’n groot gedeelte van beleggers se geld in die Highveld Syndication-maatskappye te verloor, soos wat – tragies genoeg – met ander eiendomsindikasies gebeur het.

Die maatskappy, in samewerking met Mnr Hans Klopper, die Ondernemingreddingspraktisyn, is verbind tot die reuse-uitdaging om duisende beleggers, onder wie baie pensionarisse, se beleggings te beveilig. Hierdie uitdaging is volgens sommige mense onhaalbaar as ’n mens die verwagte, geprojekteerde beleggingsopbrengste in ’n kwesbare, globale finansiële omgewing wat voortdurend verander in ag neem. Ons het gesien wat in die laaste deel van 2007 met die markte gebeur het, en die daaropvolgende uitwerking op die wêreldekonomie. Ons almal weet dus dat verrassings nie uitgesluit kan word in onsekere finansiële omstandighede nie; dit saai verwoesting wat selde beheer of beperk kan word.

Ek het die Voorsitterskap van Orthotouch voorwaardelik aanvaar, sonder dat ek toegang gehad het tot al die inligting oor die Highveld Syndication-maatskappye se geskiedenis. Ek kan dus nie pa staan vir die gebeure wat tot die huidige situasie gelei het nie.

Wat ek wel weet en met my eie oë sien, is ’n voortdurende spanpoging deur almal by die maatskappy om die beloftes wat ons aan meer as 18 000 beleggers gemaak het, na te kom.

Ek het gesien hoe hard daar gepoog word om finansiering te bekom, en hoe onderhandelinge met ’n prominente finansiële instelling teen Oktober verlede jaar beloof het om vrug af te werp. Hierdie uitkoms is egter ter elfder ure slinks in die wiele gery deur individue wat kwansuis die beleggers se belange op die hart dra, maar wat hulle voortdurend benadeel deur knaende verdagmakery oor die manier waarop die maatskappy en ander betrokkenes sake hanteer.

Okkupasie het gedaal, onderhoudskoste is hoog en die Maatskappy kon nog nie daarin slaag om fondse te kry om die rente betyds te betaal nie. Dit is tans die hoofrede vir onmin, en veroorsaak om verstaanbare redes ongelukkigheid onder beleggers. Die lang skadu’s wat oor ongenoteerde eiendomsbeleggings hang – watmaklik met die Sharemax-debakel en die gepaardgaande ontnugtering vergelyk word – boesem nie vertroue in nie. Die maatskappy werk deurlopend daaraan om die kontantvloeiprobleem wat tans ondervind word die hoof te bied. Die maatskappy besef dat die nakoming van geprojekteerde betaaltye ’n voorvereiste vir die herstel van vertroue is.

My beskeie mening is dat dit ’n fout was om aanvanklik presiese datums vir rentebetaling vas te stel, hoewel dit gebaseer was op die destydse aanduidings dat finansiering reeds verkry was. Ek het hierdie punt by my eerste maatskappydireksievergadering benadruk. Die genoemde groep kwaadstokers het hierdie aspek ongelukkig ook gebruik vir verdere verdagmakery onder beleggers, sonder om ruimte te laat vir die feit dat dit iets onvoorsiens was wat gebeur het, en dat daar geldige verduidelikings vir die laat betalings verskaf is. Die verkoop van ’n gedeelte van die maatskappy se Portefeulje aan die voorgestelde notering van dieAccelerator Eiendomsfonds sal positiewe kontantvloei skep om gereelde betalings en ’n toename in kapitaal te verseker. Sover ek kan vasstel, is groot vordering met die verwesenliking hiervan gemaak. Ek het voorgestel dat ’n omsendbrief aan aandeelhouers gestuur word om te verduidelik dat die situasie taai, maar nie wanhopig is nie, en om enige vrese oor wanpraktyke ten opsigte van finansiële bestuur te besweer. Hoewel ek nog net ’n paar maande as Voorsitter dien, het nie ek, mnr Klopper of mnr Heynie van Loggerenberg van die Ouditkomitee enige insidente teëgekom wat verkeerde vermoedens oor die finansiële bestuur van u belange laat ontstaan nie. Dit is duidelik dat die pogings van die kwaadstokers vererger soos die notering ‘n werklikheid word.

Hoe dit ook al sy, ek het deur baie lewenservaring in die algemeen – en in die sakewêreld spesifiek – geleer dat daar niks erger is nie as iemand wat sy eie belange saboteer deur gerugte te versprei voordat ongerymdhede bewys kan word en rooi vlae sigbaar is. Totdat dit gebeur, sal ek en die ander mense wat onlangs betrokke geraak het, voortgaan om die maatskappy se pogings te ondersteun om sy verpligtinge na te kom, en meer doeltreffend en meer gereeld met u kommunikeer.

Ek doen ’n beroep op u om nie tou op te gooi nie, en verseker u dat die maatskappy alles in sy vermoë doen om die agterstallige rente wat aan u verskuldig is te delg. Intussen werk ons hard aan die notering. As ons suksesvol is, sal dit die nodige fondse inbring om ons verpligtinge tot op datum na te kom.

Buiten die vertroulikheidskwessies wat vir enige onderneming belangrik is, word die vloei van sekere inligting beperk, aangesien die maatskappy en die betrokke persone ’n aantal hofgedinge voer teen die kwaadstokers en hul trawante.

Ons wens u sterkte toe en vertrou dat ons almal binnekort na hierdie episode kan terugkyk met hernieude vertroue in diegene wat verantwoordelik is vir die beveiliging van ons beleggings en die verwesenliking van ons verwagtings.

Vriendelike groete
Cas de Villiers
Pretoria

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6 Maart 2013

END

Dear Sir / Madam,

HIGHVELD SYNDICATION 15 - 22 LIMITED (“ALL UNDER BUSINESS RESCUE”)
("THE SYNDICATION COMPANIES")
UPDATE ON THE BUSINESS RESCUE PROCESS BY THE BUSINESS RESCUE PRACTITIONER (“BRP”)

  1. As we approach the anniversary of the adoption of the Business Rescue Plan we wish to announce that the Board of Directors of Orthotouch Limited has been bolstered by the appointment of two additional directors, Mr Cas De Villiers and Mr Heynie van Loggerenberg. Their resumės will be made available on the Orthotouch Website.
  2. Mr De Villiers has been appointed as Chairman of the Board, and Mr van Loggerenberg as a Member of the Audit Committee.
  3. We are pleased to report that, despite the serious challenges which we experienced in the past year, all interest payments for HS 15 – 21 to and including 7 November 2012 have now been paid to date.
  4. We are exercising our best efforts to ensure that investors’ arrears for HS 22 and December 2012 be brought up to date as soon as possible.
  5. We will do everything in our power to ensure that investors will experience regular payments of their monthly interest on an on-going basis from 2013.
  6. We also confirm that interest rates will increase by 0,25% per annum from January 2013.
  7. We record that, but for the interference of a group of individuals operating under the cloud of anonymity, we would by now have been completely up to date. These individuals who purport to represent the interests of investors, continually, through surreptitious means, endeavour to scuttle every effort made to reach a lasting solution. They will fail and the interests of investors will be protected despite their smear campaigns and other covert activities.
  8. In terms of the Revised Business Plan recently approved by the Board, Orthotouch will participate in a strategic decision by the Georgiou Group to list a property portfolio of approximately R7,6 billion on the on the Johannesburg Stock Exchange. The commercial property portfolio includes Fourways Mall (one of the country’s premier commercial developments in Northern Johannesburg) and approximately R2.9 billion of the Orthotouch properties. This listing is due to take place in April 2013. The rationale for Orthotouch to participate in such a transaction is that Orthotouch will acquire liquid (tradable) shares, which will have the effect of the Highveld Syndication companies effectively becoming proportional owners in a liquid, JSE listed and tradable, share portfolio.
  9. As a result of this transaction, a substantial portion of Orthotouch’s assets will be converted into shares in the listed entity, which will be highly regulated – the JSE being widely regarded to be one of the top regulated Stock Exchanges in the world.
  10. Fourways Mall as well as the properties included in the Fourways Precinct constitute the flagship properties behind the listing and will generate significant investor interest. The anticipated yield in the new transaction will be in excess of 8.0%.
  11. The listing on the JSE provides huge advantages in terms of liquidity as Orthotouch’s assets, in the form of listed shares, will be more marketable and easier to trade. It is anticipated that capital from local and international equity investors will easily be procured and that a listing on the JSE, as a superior regulator, will grant added security to both local and international investors.
  12. The balance of the Orthotouch assets, consisting mainly of development properties, will be retained within Orthotouch and transfer to Orthotouch will be regulated as a matter adjunct to the formal listing process. These properties will be unencumbered and the growth potential will be pursued actively to further enhance the value to be derived for the benefit of investors.
  13. The directors of Orthotouch will keep you informed regarding the developments in this matter. We are excited and firmly of the view that this is the best possible outcome for the investors.

Yours faithfully
J F KLOPPER
Business Rescue Practitioner

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December 12, 2012

Geagte Meneer / Me.,

HIGHVELD SYNDICATION 15 – 22 BEPERK (“ALMAL ONDER ONDER-NEMINGREDDING”)
("DIE SINDIKASIEMAATSKAPPYE")
JONGSTE INLIGTING AANGAANDE DIE ONDERNEMINGREDDINGSPROSES DEUR DIE ONDERNEMINGREDDINGSPRAKTISYN ("ORP")

  1. Amper ’n jaar het verloop sedert die goedkeuring van die Ondernemingreddingsplan. Ons kondig met genoeë aan dat die Direksie van Orthotouch Beperk deur die aanstelling van twee bykomende direkteure, mnr. Cas De Villiers en mnr. Heynie Van Loggerenberg, versterk is. Hul CV’s sal op die Orthotouch-webblad beskikbaar gestel word.
  2. Mnr. De Villiers is aangestel as Orthotouch se Direksievoorsitter, en mnr. Van Loggerenberg as ’n lid van die Ouditkomitee.
  3. Ons is dankbaar om verslag te kan doen dat alle rentebetalings vir HS 15 – 21 tot en met 7 November 2012 op datum is, ten spyte van die uitdagings wat ons die afgelope jaar ervaar het.
  4. Ons werp tans alles in die stryd om te verseker dat die beleggers in HS 22 se agterstallige rente en die rente vir Desember 2012 so gou moontlik betaal word.
  5. Ons doen alles in ons vermoë om te verseker dat beleggers in 2013 deurlopend hul maandelikse rente stiptelik sal ontvang.
  6. Ons bevestig ook dat die rentekoerse vanaf Januarie 2013 met 0,25% per jaar verhoog sal word.
  7. Ons wil dit graag op rekord plaas dat ons rentebetalings heeltemal op datum sou wees, as dit nie was vir die feit dat 'n groep beleggers of adviseurs in ’n anonieme hoedanigheid ons onderhandelinge met ’n bank beduiwel het nie. Hierdie individue, wat voorgee om die belange van beleggers op die hart te dra, poog voortdurend om ons soeke na ’n blywende oplossing deur slinkse metodes
  8. in die wiele te ry. Ons glo egter dat hulle sal misluk en dat die belange van beleggers beskerm sal word ten spyte van hul smeerveldtogte en ander geheime aktiwiteite.
  9. Ingevolge die hersiene sakeplan wat onlangs deur Orthotouch se Direksie goedgekeur is, het Orthoutouch besluit om deel te neem aan ’n strategiese skuif van die Georgiou-groep om ’n portefeulje van ongeveer R7.6 miljard op die Johannesburgse Effektebeurs (JEB) te noteer. Hierdie kommersiële eiendomsportefeulje sluit Fourways Mall (een van die land se voorste kommersiële ontwikkelings in die Noorde van Johannesburg) en R2.9 miljard van Orthotouch se eiendomme in. Die notering sal D.V. in April 2013 plaasvind. Die doel van hierdie transaksie is om Orthotouch in staat te stel om likiede (verhandelbare) aandele te bekom, wat die Highveld Sindikasiemaatskappye pro rata-eienaars in ’n likiede, verhandelbare en JEB-genoteerde aandeleportefeulje sal maak.
  10. As gevolg van hierdie transaksie, sal ’n groot gedeelte van Orthotouch se bates in aandele in die genoteerde entiteit omskep word, wat goed gereguleerd sal wees, aangesien die JEB een van die bes gereguleerde aandelebeurse in die wêreld is.
  11. Fourways Mall en die eiendomme wat ingesluit is in die Fourways Distrik is die vlagskip-eiendomme agter die notering en sal beduidende belangstelling onder beleggers wek. Die nuwe transaksie se verwagte opbrengs is meer as 8.0%.
  12. Die notering op die JSE bied groot voordele ten opsigte van likiditeit, aangesien Orthotouch se bates, in die vorm van genoteerde aandele, meer bemarkbaar sal wees en dus makliker wees om mee handel te dryf. Daar word verwag dat kapitaal van plaaslike en internasionale beleggers maklik verkry sal word en dat ’n notering op die JEB – weens sy status as ’n reguleerder van wêreldgehalte – ekstra sekuriteit aan beide plaaslike en internasionale beleggers sal gee.
  13. Die balans van Orthotouch se bates, wat hoofsaaklik uit ontwikkelingseiendomme bestaan, sal binne Orthotouch behou word. Die oordrag van die eiendomme na Orthotouch sal gereguleer word as aanvullend tot die formele noteringsproses. Hierdie eiendomme sal onbeswaard wees en hul groeipotensiaal sal aktief nagestreef word – wat hul waarde verder sal verbeter, tot die voordeel van beleggers.
  14. Die direkteure van Orthotouch sal u op die hoogte hou van verwikkelinge met hierdie aangeleentheid. Ons sien uit na die moontlikhede wat die transaksie bied en is van mening dat dit die beste moontlike resultaat vir beleggers bied.

Die uwe
J F KLOPPER
Ondernemingreddingspraktisyn van Highveld Syndication-maatskappye

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December 12, 2012

Orthotouch Business Rescue Plan

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October 14, 2012

Dear Sir / Madam,

HIGHVELD SYNDICATION 15 LIMITED: REG NUMBER : 2003/031064/06
HIGHVELD SYNDICATION 16 LIMITED: REG NUMBER : 2003/031129/06
HIGHVELD SYNDICATION 17 LIMITED: REG NUMBER : 2003/025913/06
HIGHVELD SYNDICATION 18 LIMITED: REG NUMBER : 2003/030778/06
HIGHVELD SYNDICATION 19 LIMITED : REG NUMBER : 2003/030144/06
HIGHVELD SYNDICATION 20 LIMITED: REG NUMBER : 2005/029425/06
HIGHVELD SYNDICATION 21 LIMITED: REG NUMBER : 2005/027601/06
HIGHVELD SYNDICATION 22 LIMITED: REG NUMBER : 2005/027390/06 

  1. We refer to our previous communications in this regard and more particularly our communication dated 13th August 2012.
  2. Numerous queries have been raised with regard to the progress insofar as the implementation of the business rescue plan adopted by all affected persons in terms of the statutory provisions of Section 150 of the Companies Act 71 of 2008 (“the Act”).
  3. At the outset kindly be advised that the business rescue process in fact and in law relates to the period from the appointment of the business rescue practitioner during September 2011 until the adoption of the business rescue plan on 14th December 2011.
  4. Subsequent to the adoption of the plan the business rescue practitioner was appointed as a director to Orthotouch Limited (“Orthotouch”) with a view to overseeing the process and acting in the interests of investors. Upon being appointed as director of Orthotouch certain fiduciary duties towards the interests of Orthotouch i.e. it’s shareholders and other stakeholders also had to be taken into consideration. As a consequence it has not always been possible to act in a manner which enabled the writer to divulge confidential information which may have been presented to him from time to time. This especially applies in situations where in the interests of Orthotouch are being negotiated under confidentiality with other parties including institutions.
  5. This does not in any manner suggest that there was a conflict of interests between the position of the writer as the business rescue practitioner overseeing the implementation of the plan and the interests of the shareholders. The interests of both parties are in fact 100% inextricably aligned.
  6. For purposes of clarification, queries have been raised relating to the business rescue process and the question of the reporting thereon by the writer as business rescue practitioner to affected persons. The position is that business rescue proceedings in terms of the Act end when a business rescue plan has been adopted and a notice of substantial implementation is subsequently filed.
    The Act furthermore requires of a business rescue practitioner to report on a monthly basis to the Commission and all affected persons on the business rescue process in the absence of an Order of Court in terms of which he was absolved from doing so. Upon advice provided by the writer the provisions of the Act indicate that the reporting that needs to be done to affected persons on a monthly basis relate to circumstances under which a business rescue plan had not as yet been filed. This is obviously not the position in this case.
  7. A business rescue plan was timeously published within three months and was adopted by all affected persons in terms of the Act as is evident from the voting results. Under these circumstances the notice of substantial implementation is still pending for good reasons as the writer is presently waiting for the payment of the interest to investors in Highveld Syndication 22 to be finalised whereafter it will be considered whether a Notice of Substantial Implementation should be filed with the Commission.
  8. The provisions of Section 158 of the Act which provides that the spirit and intention of the legislator needs to be promoted at all times needs to be taken into cognisance. Obviously it would be both impractical and foolish to report to investors monthly at an exorbitant cost of communication under circumstances where there was already a business rescue plan adopted.
  9. Insofar as the issues relating to the late payment of interest are concerned the company and its officers remain committed to ensure that the affairs of this company are administered in such a manner as will very soon entail regular payments to investors. It has, for a number of reasons, been difficult for the company to survive under circumstances where funding requirements from financial institutions in order to enable a company of this size to operate fully are not forthcoming. The funding issues were discussed in detail in our previous communication of 13 August 2012.
  10. The duly appointed auditors are presently conducting an audit of Orthotouch and issues such as the funding of Orthotouch by Zephan Properties (Pty) Limited since the adoption of the plan, the valuations of properties and all the financial affairs of Orthotouch are presently being audited.
  11. There are at present, discussions taking place with a number of significant role-players with a view to implementing a process which will enhance and improve the position of the investors and allay all their risks and fears.
  12. Kindly bear in mind that the business rescue provisions, which were promulgated during the early parts of 2011, enabled the writer as business rescue practitioner to stave off deliberate attempts to have the companies liquidated which would have been severely detrimental to investors and which would have led to tremendous hardship. Investors would have been at the mercy of a liquidation process which would have been time consuming and very costly. This was fully explained and canvassed in the business rescue plan to which investors are once again referred.
  13. We furthermore request investors to remain patient and to assist us in in allowing this process to unfold in order to procure a proper solution for all investors.
  14. We are aware that communications being sent to investors by various parties contain negative information which persistently is disseminated amongst certain role players with a view to derailing the process and to detract from the aim of the business rescue process.
  15. We call on investors to kindly be circumspect in dealing with such negative communications as this can only lead to a final collapse of the process to the detriment of the truly affected parties, the investors, and would benefit only the few who wish to pursue their own interests.

Yours faithfully
J F KLOPPER
Business Rescue Practitioner

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October 12, 2012

Geagte Meneer / Me,

HIGHVELD SYNDICATION 15 BEPERK: REG.NOMMER : 2003/031064/06
HIGHVELD SYNDICATION 16 BEPERK: REG.NOMMER : 2003/031129/06
HIGHVELD SYNDICATION 17 BEPERK: REG.NOMMER : 2003/025913/06
HIGHVELD SYNDICATION 18 BEPERK: REG.NOMMER : 2003/030778/06
HIGHVELD SYNDICATION 19 BEPERK: REG.NOMMER : 2003/030144/06
HIGHVELD SYNDICATION 20 BEPERK: REG.NOMMER : 2005/029425/06
HIGHVELD SYNDICATION 21 BEPERK: REG.NOMMER : 2005/027601/06
HIGHVELD SYNDICATION 22 BEPERK: REG.NOMMER : 2005/027390/06

  1. Ons verwys na ons vorige korrespondensie in hierdie verband en meer spesifiek ons korrespondensie gedateer 13 Augustus 2012.
  2. Daar was verskeie navrae oor vordering ten opsigte van die inwerkingstelling van die ondernemingreddingsplan wat ingevolge die bepalings van Artikel 150 van die Maatskappyewet, 1971 (Wet 71 van 2008) (“die Wet”), deur alle geaffekteerde persone aanvaar is.
  3. Neem asseblief uit die staanspoor kennis dat die ondernemingreddingsproses feitelik en regtens verwys na die tydperk vandat die ondernemingreddings-praktisyn in September 2011 aangestel is, totdat die ondernemingreddingsplan op 14 Desember 2011 aanvaar is.
  4. Ná die aanvaarding van die plan is die ondernemingreddingspraktisyn as ’n direkteur van Orthotouch Beperk (“Orthtouch”) aangestel, met die doel om toesig te hou oor die proses en in beleggers se belang op te tree. Ná die aanstelling as direkteur van Orthotouch moes sekere fidusiêre pligte teenoor Orthotouch se belange, m.a.w. sy aandeelhouers en ander belanghebbers, ook in ag geneem word. Gevolglik kon die skrywer nie altyd só optree dat hy vertroulike inligting wat van tyd tot tyd aan hom voorgelê is, kon deurgee nie. Dit geld veral in situasies waar daar vertroulik oor die belange van Orthotouch onderhandel word met ander partye, met inbegrip van instellings.
  5. Dit beteken hoegenaamd nie dat daar enige botsende belange was tussen die skrywer se posisie as die ondernemingreddingspraktisyn wat toesig hou oor die plan se inwerkingstelling en die belange van die aandeelhouers nie. Albei partye se belange is trouens 100% onlosmaaklik verweef.
  6. Navrae oor die ondernemingreddingsproses is duidelikheidshalwe geopper, en die kwessie oor verslagdoening daaroor aan geaffekteerde persone deur die skrywer as die ondernemingreddingspraktisyn. Die stand van sake is dat ondernemingreddingsverrigtinge ingevolge die Wet eindig sodra ’n ondernemingreddingsplan aanvaar word, en ’n kennisgewing van wesenlike inwerkingstelling daarna ingedien word. Die Wet vereis voorts dat ’n ondernemingreddingspraktisyn op ’n maandelikse grondslag aan die Kommissie en aan alle geaffekteerde persone moet verslagdoen, tensy daar ’n Hofbevel bestaan wat hom van hierdie vereiste vrywaar. Volgens die skrywer se advies oor die bepalings van die Wet, verwys die vereiste dat verslagdoening aan geaffekteerde persone op ’n maandelikse grondslag moet geskied, na omstandighede waar ’n ondernemingreddingsplan nog nie ingedien is nie. Dit is uiteraard nie hoe sake staan in hierdie geval nie.
  7. ’n Ondernemingreddingsplan is betyds, binne drie maande, gepubliseer en ingevolge die Wet deur alle geaffekteerde persone aanvaar, soos wat blyk uit die stemuitslae. Teen hierdie agtergrond is die Kennisgewing Van Wesenlike Inwerkingstelling nog hangende, aangesien die skrywer tans wag vir die betaling van rente aan beleggers in Highveld Syndication 22 om gefinaliseer te word, waarna daar oorweeg sal word of ’n Kennisgewing van Wesenlike Inwerkingstelling by die Kommissie ingedien moet word.
  8. Die bepalings van Artikel 158 van die Wet wat bepaal dat daar te alle tye op die gees en die letter van die wetgewing gelet moet word, moet in ag geneem word. Dit sal uit die aard van die saak onprakties en dwaas wees om maandeliks teen uiters hoë kommunikasiekoste aan beleggers verslag te doen onder omstandighede waar daar reeds ’n ondernemingreddingsplan aanvaar is.
  9. Wat die kwessie van die laat betaling van rente betref, bly die maatskappy en sy beamptes daartoe verbind om die maatskappysake op só ’n manier te administreer dat die gereelde betaling van beleggers ’n roetinedeel daarvan uitmaak. Tot dusver was dit vir die maatskappy om verskeie redes moeilik om te oorleef in omstandighede waar finansiële instellings nie die nodige fondse verskaf om ’n maatskappy van hierdie grootte te bedryf nie. Die befondsingskwessies is in besonderhede bespreek in ons vorige korrespondensie, gedateer 13 August 2012.
  10. Die behoorlik aangestelde ouditeurs onderneem tans ’n oudit van Orthotouch; kwessies soos die befondsing van Orthotouch deur Zephan Properties (Edms) Beperk sedert die aanvaarding van die plan, die waardasies van die eiendomme en al Orthotouch se finansiële sake word tans geoudit.
  11. Daar is tans onderhandelinge met ’n aantal beduidende rolspelers aan die gang met die oog daarop om ’n proses in werking te stel wat die beleggers se posisie sal versterk en verbeter, en hul vrese en risiko’s sal besweer.
  12. Hou in gedagte dat die ondernemingreddingsbepalings, wat vroeg in 2011 gepromulgeer is, die skrywer in staat gestel het om moedswillige pogings om die maatskappye te laat likwideer, wat baie nadelig vir beleggers sou wees, af te weer. Beleggers sou aan die kortste ent van ’n baie duur, tydrowende likwidasieproses getrek het. Dit is ten volle uiteengesit in die ondernemingreddingsplan. Beleggers word weer eens gevra om dit te raadpleeg.
  13. Ons vra beleggers voorts om geduldig te bly en ons te help deur die proses toe te laat om op ’n manier te ontvou wat vir alle beleggers ’n behoorlike oplossing sal bied.
  14. Ons is bewus daarvan dat verskeie partye sekere korrespondensie aan beleggers stuur met die doel om die proses te ontspoor en om die ondernemingreddingsproses se oogmerk skipbreuk te laat ly.
  15. Ons vra beleggers vriendelik om sulke negatiewe korrespondensie met groot omsigtigheid te hanteer, aangesien dit die proses ’n finale nekslag kan toedien en die partye wat waarlik geaffekteer is, die beleggers, kan benadeel en slegs ’n klein groepie wat hul eie belange probeer bevorder, sal bevoordeel.

Die uwe
J F KLOPPER
Ondernemingreddingspraktisyn

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October 12, 2012

HIGHVELD SYNDICATION 15
LIMITED HIGHVELD SYNDICATION 16
LIMITED HIGHVELD SYNDICATION 17
LIMITED HIGHVELD SYNDICATION 18
LIMITED HIGHVELD SYNDICATION 19
LIMITED HIGHVELD SYNDICATION 20
LIMITED HIGHVELD SYNDICATION 21
LIMITED HIGHVELD SYNDICATION 22 LIMITED
(ALL UNDER BUSINESS RESCUE) (“HS 15-22”) OR (“THE COMPANIES”)

MEMORANDUM TO INVESTORS/AFFECTED PERSONS

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August 13, 2012

Die Beleggers
Highveld Syndication No.’s 15 tot 22 Beperk

Geagte Meneer/Me.

Daar was verskeie navrae oor die opbrengs van die verkoop van Southdale, ’n bate van Highveld Syndication 17 Beperk wat deel gevorm het van Orthotouch se bates ingevolge die Ondernemingreddingsplan.

Orthotouch het die afgelope paar maande sedert die aanvaarding van die Ondernemingreddingsplan op Zephan Properties (Edms) Bpk staatgemaak vir befondsing om sy maandelikse verpligtinge te kan nakom.

Die opbrengs van die Southdale-verkoopstransaksie is gebruik om verwante kostes en uitgawes te betaal, en die oorblywende saldo is beskikbaar gestel aan finansiële instellings om, onder meer, finansiële reëlings aangaande ’n paar entiteite, insluitende Orthotouch, te herstruktureer. Besonderhede sal in die loop van sake in die finansiële state weerspieël word. Dit sal onder meer lei tot die inbring van meer volhoubare eiendomme om die Orthotouch-sakeplan te versterk, en om verdere befondsing en waarde tot voordeel van Orthotouch en die beleggers te ontsluit. Dit sal Orthotouch help om sy verpligtinge na te kom in die toekoms en om toe te neem in waarde. Ander entiteite is betrokke by die besonderhede van hierdie proses en vertroulikheid is belangrik.

Hierdie proses word tans gefinaliseer. Beleggers sal so gou moontlik – maar beslis voor die einde van die maand – alle rente wat tot op datum betaalbaar is, ontvang.

Ons is vol vertroue dat rentebetalings danksy die herstrukturering daarna betyds gedoen sal word, teen die 7de van elke maand.

WDankie vir u geduld.

Die uwe
ORTHOTOUCH BEPERK
NIC GEORGIOU
Besturende Direkteur

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August 08, 2012

The Investors
Highveld Syndication Nos 15 to 22 Limited

Dear Sir/Madam,

There have been numerous queries about the proceeds of the sale of Southdale, which was an asset of Highveld Syndication 17 Limited and which formed part of the assets of Orthotouch in terms of the Business Rescue Plan.

Orthotouch has been relying on Zephan Properties (Pty) Limited for funding to enable it to meet its monthly commitments during the past few months since the adoption of the Business Rescue Plan.

The proceeds of the Southdale sale have been utilised to pay related costs and expenses and the balance made available to financial institutions to restructure, inter alia, financial arrangements involving a number of entities including Orthotouch. Details will be reflected in the financial statements in due course. This will, inter alia, have the effect of introducing more sustainable properties to reinforce the Orthotouch business plan and unlocking further funding and value for the benefit of Orthotouch and the investors. It will assist in enabling Orthotouch to meet its commitments going forward and increase value. The details of this process involve other entities and confidentiality is important.

This process is presently being finalised. Investors will be paid all interest due to date as soon as possible and in any event before the end of this month. 

We are confident that as a result of the restructure interest payments will thereafter be made on time by the 7th day of each month. 

We thank you for your patience. 

Yours faithfully
ORTHOTOUCH LIMITED
NIC GEORGIOU
Managing Director

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August 08, 2012

TIPS FOR RENTING A COMMERCIAL PROPERTY

Property rental can be a major part of you operating costs. Depending on the type of business you are running it can easily make up between 10% and 30% of your annual operating expenses.

It is therefore important to rent the right premisis for your current and future needs. While scalability is important it is just as important to not commit to something that you can not afford when things go wrong, as especially with new businesses, not everything always goes according to plan.

It is a good idea to go through the checklist listed below before renting a premisis:

  • Find out the market rent in the area. This can be done by asking other shop owners or agents.
  • Is your rental within the norm of the area?
  • Is the length of the lease appropriate or are you entering a risky lease in if things go wrong?
  • Does the lease agreement include an unconditional break clause which will allow you to surrendor early?
  • Find out who will be responsible for repairs and insurance.
  • Find out about the license of the permisis. Does it allow your business current and future needs to operate within it license?
  • Check the local authority or ask the agents regarding levies and business rates that might be applicable outside the rental payment.
  • Check the contract to see if rent reviews are fair.
  • Does the landlord want personal guarantees from the directors of the business? If so is the personal risk that you are taking worth it?
  • Is surety required to sign the rental deal?
  • Can you provide good referneces, from the bank, suppliers and customers. Have you got good credit ratings?
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February 27, 2012

ORTHO CIRCULAR - ENGLISH

Dear Sir / Madam,

ORTHOTOUCH LIMITED / HIGHVELD SYNDICATION NO. 15 TO 22 LIMITED (UNDER BUSINESS RECUE AND BUSINESS RESCUE PLAN)

  1. We refer to the previous communication dated 13th February 2012 from the business rescue practitioner which was posted on the www.pickvest.co.za website and which was also communicated to all investors at their known addresses.
  2. We have, for the past three months, exercised our best endeavours to ensure that the necessary be done to enable the affairs of the companies under Business Rescue (and as such process has manifested in the approved Business Rescue Plan ("BRP") of December 2011) to be dealt with, including for the administration of the properties which are to be transferred from the Highveld Companies and from Zephan Properties (Pty) Limited ("Zephan") to Orthotouch, to come under the control of Orthotouch.
  3. In terms of the BRP and the implementation thereof we have been able to ensure that most documentation required to give effect to the BRP have been executed and signed by the relevant parties. This includes –
    1. the signature of all sureties, including the relevant written suretyship documentation in terms of the BRP;
    2. the signature of the cession and pledge of shares documentation in terms of the BRP, including the actual relevant share certificates being held in trust; and
    3. the signature of all agreements required to give effect to the transfer of the properties to be transferred in terms of the BRP and the Orthotouch agreement, by all parties thereto, including Zephan (in respect of the subject matter properties), the Highveld Syndication Companies (in respect of the subject matter properties) and Orthotouch in respect of all the properties to be transferred to Orthotouch.
  4. The formal transfer process is under way as expeditiously as possible and, in particular, clearance figures are to be obtained in respect of the properties to be transferred.
  5. The process of the transfer of the properties to Orthotouch is required so as to vest investors with the security for their investment repayments in terms of the BRP.
  6. Investors are kindly requested to remain patient whilst the Othotouch process is implemented and to take cognisance of the fact that the issues that caused the Highveld companies to be in financial distress and pursuat to which the companies were placed in Business Rescue are not going to be resolved overnight.
  7. To improve the above will take time and whilst every effort is being made to ensure that adequate finance is available on a monthly basis. Negotiations with financial with financial institutions and financiers do not always bear immediate results and under these circumstances we have had situations where investors are inconveniences due to the late payment of interest. We apologise for this.
  8. In the meantime we have created a website for information purposes which will be known as www.orthotouch.co.za.
  9. Kindly further note that telephonic queries which were previously addressed to the business rescue practitioner and other parties must now be addressed to the following number 0860 742 742.
  10. Kindly note that, whilst this number was previously known as the "Pickvest Call Centre", relevant activities of Orthotouch are being handled by JPA Secretarial, through staff who are being trained to deal with all queries in an efficient manner.
  11. There are still a number of elements who prefer to see Orthotouch fail and the Highveld Companies to be liquidated. To such end reckless and inaccurate information is disseminated on a regular basis through the media. Investors are reminded that –
    1. despite the fact that interest payments have hitherto been delayed, all interest has been, paid up to date; and
    2. the Orthotouch deal affords investors the only realistic chance they have of redeeming their capital.
  12. We trust that you will find the above in order and will keep you updated as events unfold.

Yours faithfully
J. J. NEL
CHAIRMAN
ORTHOTOUCH BOARD OF DIRECTORS

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May Intrest

Interest for the month of May has been paid, and we thank investors for their continued support. 

From management of Orthotouch.

Welkom

Welkom by die eerste Orthotouch Nuusbrief. Orthotouch Nuus sal belanghebbers betrokke en op die hoogte hou van die maatskappy se vordering. Orthotouch-nuus sal gereeld ná Direksievergaderings op die webwerf gepubliseer word.

Negatiewe magte (die kritici) is nog steeds besig met hul agenda om Orthotouch se redding van die Highveld Syndication-maatskappye vir hul eie gewin te ontspoor. Orthotouch vaar goed en bereik die mylpale wat vir die maatskappy gestel is, al wil die kritici ons Beleggers anders wysmaak.

Enige onderneming ervaar groeipyne in die aanvangsfase, en ons is geen uitsondering nie. Ons onderneming is egter nie enige hierjy-besigheid nie – dit is 'n eiendomsfonds wat daarna streef om sy waarde van minder as R3 miljard tot meer as R5 miljard te verhoog. Dit wil gedoen wees!!!

Hoewel die media, koerante en radio, ons kritici napraat, hou die maatskappy aan om sy doelwitte na te streef. Gelukkig is daar Beleggers (wat op stuk van sake ons grootste belanghebbers is) wat nou die volle prentjie sien. Dit is 'n riem onder die hart om hul briewe van waardering en bemoediging te kry.

Vergaderings

Orthotouch het tot dusver hierdie jaar 3 direksievergaderings en 1 spesiale vergadering van die Regskomitee gehou.

Een van die hoofdoelwitte van die vergaderings was om beheer te neem van Orthotouch se bates en om nakomingsmaatreëls ten opsigte van Korporatiewe Beheer in te stel.

Die Direksie is om hierdie rede formeel ingehuldig en verskeie subkomitees is gevorm.

Direksie:

  • Jannie Nel * - Voorsitter
  • Nic Georgiou - Besturende Direkteur
  • Hans Klopper * - Direkteur
  • Connie Myburg * - Direkteur
  • Panos Kleovoulou *  - Direkteur
* Nie-uitvoerend

Bestuurskomitee (ManCom)

  • Nic Georgiou - Voorsitter
  • Dimitri Kyriakides - Finansies
  • Anton Killian - Eiendom & Verhuring
  • Kyriacos Michaelides - Strategie

Audit Komittee

  • Jannie Nel 
  • Connie Myburg 
  • Panos Kleovoulou

Vergoedingskomitee

3 Direkteure, mits geen party lid is van die komitee wanneer sy of haar eie vergoeding oorweeg word nie

Doelwitte

Benjamin Disraeli het gesê:

"Die geheim van sukses is om in jou doel te volhard." 

Die Direksie en die verskeie komitees van Orthotouch is vasberade om hul doel – om die Ondernemingreddingsplan wat op 14 Desember 2011 deur die beleggers van Highveld Syndications 15 -22 Beperk aanvaar is ten volle uit te voer – te bereik, en wy al hul tyd en energie hieraan.

Ten spyte van die kabaal wat ons kritici probeer opskop, is Orthotouch die enigste maatskappy wat tot dusver poog om 'n eiendomsindikasiegroep te red, en daardie proses vorder goed.

Baie van die beleggers wat in Highveld Syndications belê het, het ook in ander eiendomsindikasies belê, wat almal misluk het. Geen poging is aangewend om enige van die ander mislukte sindikasies te red nie.

Ons doen 'n ernstige beroep op belanghebbers – en in besonder Beleggers – om Orthotouch se werksaamhede te ondersteun, en hulle nie te steur aan die vals beloftes en gemene spel van ons kritici nie.

Ons kritici gaan die een of ander tyd 'n oordeelsfout begaan wat hul ware kleure en selfsugtige agendas sal ontbloot.

Veiling van Eiendomme

Die kritici probeer om die feit dat Orthotouch verskeie eiendomme laat opveil as 'n gevaarteken voor te hou.

Die Aksieplan, wat deel vorm van die Sakeplan waarop die Orthotouch-transaksie geskoei is, sê onder meer:

  • "Orthotouch se doelwit is om die hoogste moontlike opbrengs op die Aandeelhouers se belegging te verkry deur die verkoop van die nie-presterende eiendomme, en die benutting van die opbrengs daaruit om primêre winkelsentrums te herontwikkel …"
  • Orthotouch se plan is oorwegend om:-- 
  • nie-presterende eiendomme te verkoop
  • primêre winkelsentrums te herontwikkel …
  • die nodige hulpbronne en vaardighede te benut om Orthotouch as 'n hoogs gerespekteerde winkelsentrum-ontwikkelaar te posisioneer …
  • die beleggingseiendomportefeulje professioneel te bestuur
  • die kontant wat uit die verkoop van nie-presterende bates verkry word, aan te wend tot die maksimum voordeel van aandeelhouers en belanghebbers."

Die verkoop van eiendomme is en was nog altyd 'n integrale deel van die Onderneming- reddingsplan.

Veilingverkope is altyd onderhewig aan bevestiging, en die afslaer speel met ander woorde dieselfde rol as 'n makelaar. Dit is aanvaarde sakepraktyk, en die duistere konnotasies wat hieraan toegedig word, is niks meer as verdere gemene spel deur ons kritici nie.

Verskeie Orthotouch-eiendomme is op 28 Maart 2012 deur The High Street Auction Co. opgeveil. Die Veiling is by Summer Place in Illovo gehou, en daar was 'n goeie opkoms. Verskeie aanbiedinge is ontvang, en word tans oorweeg deur die Bestuurskomitee en die Direksie.

Toekomstige uitgawes van Orthotouch-nuus sal verslag doen oor afgehandelde transaksies wat 'n uitwerking het op die Eiendomsportefeulje.

Paasfees

"Die boodskap van Paasfees kan nie in die verlede tyd geskryf word nie. Dit is 'n boodskap vir vandag en vir die toekoms. Dit is God se boodskap, wat voortdurend deur ons lewe moet eggo." ~Frank D. Getty


Mag u
Hoop beleef, want dit is die blydskap van Paasfees;
Vrede beleef, want dit is die belofte van Paasfees;
Liefde beleef, want dit is die gees van Paasfees.

Betaling van Rente

Ons kritici voer aan dat die betaling van rente met opset tot die laaste moontlike dag uitgestel word. Dit is van alle waarheid ontbloot.

Alles word in die stryd gewerp om Orthotouch se kontantvloei te herstel sodat rente betyds betaal kan word, m.a.w. op die 7de van elke maand. Hierdie proses is ongelukkig vertraag weens 'n stadige wegspring, wat veroorsaak is deur 'n groot finansiële instelling wat ons in die steek gelaat het. Dit het Orthotouch in 'n posisie geplaas waar ons sedertdien heeltyd moet probeer "inhaal".

Die probleem geniet aandag en sal binnekort opgelos wees.

In die tussentyd sal die rente wat op 7 April 2012 betaalbaar was, nie later as 20 April 2012 betaal word nie.

Refaksionele Bydraes

Belanghebbers van Orthotouch word genooi om artikels van belang voor te lê vir insluiting in toekomstige nuusbriewe. Die Bestuurskomitee en die Direksie behou te alle tye die reg om te besluit watter artikels om in te sluit of af te keur, hetsy gedeeltelik of algeheel.

Vertroulikheid

Orthotouch-nuus het die volgende gedeelte uit 'n artikel op die Internet aangepas:

"Wanneer 'n mens eiendom verkoop, is vertroulikheid deurslaggewend.

Indien werknemers, mededingers en ander uitvind dat 'n eienaar 'n eiendom wil verkoop, kan dit baie negatiewe gevolge hê, die eiendomstransaksie verongeluk en meer.

Die kwessie van sakevertroulikheid moet nie ligtelik opgeneem word nie. Vertroulikheid is kernbelangrik as 'n mens suksesvol sake wil doen.

Hoekom? Wel, gestel iemand in jou organisasie wat weet wat jy beplan, praat met 'n mededinger? Dit kan tot gerugte lei wat 'n potensiële transaksie kan verongeluk.

Vertroulikheid is die hartklop van 'n gesonde onderneming. Bespreek planne met die sleutelbestuurslui wat nodig is om jou onderneming suksesvol te maak.

Het alle belanghebbers dieselfde toegang tot inligting? Nee!!! Inligting word verpak op grond van senioriteit en die noodsaaklikheid om te weet."

Ons kritici maak groot gewag van die feit dat Orthotouch nie elke skuif wat hy maak aan die groot klok hang nie. Ons weerhou nie inligting met opset nie, maar probeer verseker dat ons alles in die stryd werp om ons doelwit te bereik.

Orthotouch sal probeer om belanghebbers hoofsaaklik via Orthotouch-nuus en die webwerf so ingelig moontlik te hou, sonder om ons werksaamhede in gevaar te stel weens 'n gebrek aan vertroulikheid.

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April 05, 2012

ORTHO CIRCULAR - ENGLISH

Dear Sir / Madam,

ORTHOTOUCH LIMITED / HIGHVELD SYNDICATION NO. 15 TO 22 LIMITED (UNDER BUSINESS RECUE AND BUSINESS RESCUE PLAN)

  1. We refer to the previous communication dated 13th February 2012 from the business rescue practitioner which was posted on the www.pickvest.co.za website and which was also communicated to all investors at their known addresses.
  2. We have, for the past three months, exercised our best endeavours to ensure that the necessary be done to enable the affairs of the companies under Business Rescue (and as such process has manifested in the approved Business Rescue Plan ("BRP") of December 2011) to be dealt with, including for the administration of the properties which are to be transferred from the Highveld Companies and from Zephan Properties (Pty) Limited ("Zephan") to Orthotouch, to come under the control of Orthotouch.
  3. In terms of the BRP and the implementation thereof we have been able to ensure that most documentation required to give effect to the BRP have been executed and signed by the relevant parties. This includes –
    1. the signature of all sureties, including the relevant written suretyship documentation in terms of the BRP;
    2. the signature of the cession and pledge of shares documentation in terms of the BRP, including the actual relevant share certificates being held in trust; and
    3. the signature of all agreements required to give effect to the transfer of the properties to be transferred in terms of the BRP and the Orthotouch agreement, by all parties thereto, including Zephan (in respect of the subject matter properties), the Highveld Syndication Companies (in respect of the subject matter properties) and Orthotouch in respect of all the properties to be transferred to Orthotouch.
  4. The formal transfer process is under way as expeditiously as possible and, in particular, clearance figures are to be obtained in respect of the properties to be transferred.
  5. The process of the transfer of the properties to Orthotouch is required so as to vest investors with the security for their investment repayments in terms of the BRP.
  6. Investors are kindly requested to remain patient whilst the Othotouch process is implemented and to take cognisance of the fact that the issues that caused the Highveld companies to be in financial distress and pursuat to which the companies were placed in Business Rescue are not going to be resolved overnight.
  7. To improve the above will take time and whilst every effort is being made to ensure that adequate finance is available on a monthly basis. Negotiations with financial with financial institutions and financiers do not always bear immediate results and under these circumstances we have had situations where investors are inconveniences due to the late payment of interest. We apologise for this.
  8. In the meantime we have created a website for information purposes which will be known as www.orthotouch.co.za.
  9. Kindly further note that telephonic queries which were previously addressed to the business rescue practitioner and other parties must now be addressed to the following number 0860 742 742.
  10. Kindly note that, whilst this number was previously known as the "Pickvest Call Centre", relevant activities of Orthotouch are being handled by JPA Secretarial, through staff who are being trained to deal with all queries in an efficient manner.
  11. There are still a number of elements who prefer to see Orthotouch fail and the Highveld Companies to be liquidated. To such end reckless and inaccurate information is disseminated on a regular basis through the media. Investors are reminded that –
    1. despite the fact that interest payments have hitherto been delayed, all interest has been, paid up to date; and
    2. the Orthotouch deal affords investors the only realistic chance they have of redeeming their capital.
  12. We trust that you will find the above in order and will keep you updated as events unfold.

Yours faithfully
J. J. NEL

CHAIRMAN
ORTHOTOUCH BOARD OF DIRECTORS

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March 05, 2012

Welcome

Welcome to the first Orthotouch Newsletter.

Orthotouch News will keep stakeholders involved and updated in regard to the progress of the Company. Orthotouch News will be published on the Website on a regular basis following on meetings of the Board of Directors.

Negative forces (the detractors) are still active with their agenda to derail the Orthotouch rescue of the Highveld Syndication Companies for their own purposes. Such forces would have our Investors believe otherwise, but Orthotouch is running well and is on target to achieve its objectives.

In the start-up of any business there are teething problems and we are having our share. This however, is not just any business – it is a property fund which is striving within 5 years to increase its value from less than R3 billion to more than R5 billion. No mean feat!!!

Though the media, paper and radio, pay lip service to the detractors of Orthotouch, the Company continues to strive towards its objectives. Fortunately there are Investors (who at the end of the day are our primary concern) who are now seeing the true picture and it is heartening to receive their letters of appreciation and encouragement. 

Meetings

Orthotouch has thus far held 3 board meetings and 1 special meeting of the Legal Committee this year. 

One of the primary objectives of the meetings was to take charge of the assets of Orthotouch and to introduce measures of compliance in regard to Corporate Governance. 

To this end the Board of Directors was formally installed and various sub-committees were formed.

Board of Directors:

  • Jannie Nel * - Chairman
  • Nic Georgiou - Managing Director
  • Hans Klopper * - Director
  • Connie Myburg * - Director
  • Panos Kleovoulou *  - Director
* Non-Executive

Management Committee (ManCom)

  • Nic Georgiou - Chairman
  • Dimitri Kyriakides - Finance
  • Anton Killian - Property & Leasing
  • Kyriacos Michaelides - Strategy

Audit Committee

  • Jannie Nel 
  • Connie Myburg 
  • Panos Kleovoulou

Remuneration Committee

3 Directors provided that no party shall be a member of the committee when his or her own remuneration is under consideration

Goals

Benjamin Disraeli once said: 

"The secret of success is constancy of purpose." 

The Board of Directors and the various Committees of Orthotouch remain steadfast in their resolve to fully deliver in terms of the Business Rescue Plan adopted by the investors in Highveld Syndications 15 -22 Limited on 14th December 2011 and they are exercising their fullest attention and best endeavours in this regard. 

Despite the hype created by the detractors, Orthotouch is the only company to have attempted a bail-out of a property syndication group, and that process is progressing well. 

Many of the investors involved in the Highveld Syndications were also involved with other property syndications, all of which have failed. No attempt was made to bail out any of the other failed syndications. 

Stakeholders and in particular Investors are urged to support Orthotouch in its endeavours and not to be swayed by false promises and derailing tactics of detractors. 

Sooner or later the detractors will overplay their hand and their ulterior motives and self-serving agendas will be exposed.

Auction of Properties

The detractors have sought to make ominous suggestions relating to the placement of several properties by Orthotouch on Auction. 

The Plan of Action forming part of the Business Plan upon which the Orthotouch deal is based, provides, inter alia, that:- 

  • "The objective of Orthotouch is to maximise the investment return of Shareholders and all Stakeholders in Orthotouch by selling off the non-performing properties and utilising the proceeds to redevelop primary shopping centres……….… 
  • The broad plan of Orthotouch ………… is to:- 
  • sell non-performing properties
  • redevelop primary shopping centres………
  • employ necessary resources and skills to position Orthotouch as a highly respected developer of shopping centres………..
  • professionally manage the investment property portfolio
  • invest the cash generated from the sale of non-performing assets to the maximum benefit of shareholders and stakeholders." 

The selling of properties is and has at all times been an integral part of the Business Rescue Plan.

Sales by auction are always subject to confirmation and therefore the auctioneer in effect serves the same role as a broker. This is normal in business and the sinister connotations attached to this process constitute no more than further derailing tactics.

Several Orthotouch properties were placed on Auction by The High Street Auction Co on 28 March 2012. 

The Auction which was held at Summer Place in Illovo was well attended. Several offers have been received and are currently under consideration by ManCom and the Board. 

Future editions of Orthotouch News will report on concluded sales and purchases which affect the Property Portfolio.

Easter

"The message of Easter cannot be written in the past tense. It is a message for today and the days to come. It is God's message which must re-echo through our lives." ~Frank D. Getty


May you have
The gladness of Easter, which is Hope
The promise of Easter, which is Peace
The spirit of Easter, which is Love

Payment of interest

The detractors have sought to suggest that the payment of interest is deliberately delayed to the last day possible. This is absolutely not true. 

Every effort is being made to get the cash flow of Orthotouch right to enable the interest to be paid on time i.e. by the 7th of each month. 

Delays in this process have been unavoidable due to a bad kick-off due to Orthotouch being let down by a major financial institution, placing Orthotouch in a position where it has been "playing catch up" since. 

The problem is being addressed in earnest and will be resolved soon. 

In the meantime the interest due on 7 April 2012 will be paid not later than 20 April 2012.

Contributory Article

Stakeholders of Orthotouch are invited to submit articles of interest for inclusion in future newsletters. It will at all times be in the discretion of ManCom and the Board whether to print any articles at all, in part or in whole. 

Confidentiality

Orthotouch News has adapted the following passage from an article on the Internet: 

"When selling a property, confidentiality is key. 

If employees, competitors and others find out that an owner intends to sell a property, the consequences can be extremely negative, well beyond simply putting the property sale at risk. 

The issue of business confidentiality should not be taken lightly. 

Confidentiality is vital if you hope to successfully conduct your business. 

Why? Well, what if someone in your organization familiar with your plans talks to a competitor? That could lead to rumours that derail a potential sale. 

Confidentiality is core to running a successful business. You discuss plans with the key executives that are essential to making your business successful. 

Do all stakeholders have the same access to information? No!!! Information is parcelled based on seniority and need to know." 

The detractors make much hype of the fact that Orthotouch does not report on every move it makes. There is no intention to withhold information, only to ensure that every effort is made to succeed in our goal. 

Through Orthotouch News and the Website generally, Orthotouch will endeavor to keep stakeholders as informed as possible without risking failure through breach of confidentiality.

Welcome

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April 05, 2012

ORTHO CIRCULAR - ENGLISH

Dear Sir / Madam,

ORTHOTOUCH LIMITED / HIGHVELD SYNDICATION NO. 15 TO 22 LIMITED (UNDER BUSINESS RECUE AND BUSINESS RESCUE PLAN)

  1. We refer to the previous communication dated 13th February 2012 from the business rescue practitioner which was posted on the www.pickvest.co.za website and which was also communicated to all investors at their known addresses.
  2. We have, for the past three months, exercised our best endeavours to ensure that the necessary be done to enable the affairs of the companies under Business Rescue (and as such process has manifested in the approved Business Rescue Plan ("BRP") of December 2011) to be dealt with, including for the administration of the properties which are to be transferred from the Highveld Companies and from Zephan Properties (Pty) Limited ("Zephan") to Orthotouch, to come under the control of Orthotouch.
  3. In terms of the BRP and the implementation thereof we have been able to ensure that most documentation required to give effect to the BRP have been executed and signed by the relevant parties. This includes –
    1. the signature of all sureties, including the relevant written suretyship documentation in terms of the BRP;
    2. the signature of the cession and pledge of shares documentation in terms of the BRP, including the actual relevant share certificates being held in trust; and
    3. the signature of all agreements required to give effect to the transfer of the properties to be transferred in terms of the BRP and the Orthotouch agreement, by all parties thereto, including Zephan (in respect of the subject matter properties), the Highveld Syndication Companies (in respect of the subject matter properties) and Orthotouch in respect of all the properties to be transferred to Orthotouch.
  4. The formal transfer process is under way as expeditiously as possible and, in particular, clearance figures are to be obtained in respect of the properties to be transferred.
  5. The process of the transfer of the properties to Orthotouch is required so as to vest investors with the security for their investment repayments in terms of the BRP.
  6. Investors are kindly requested to remain patient whilst the Othotouch process is implemented and to take cognisance of the fact that the issues that caused the Highveld companies to be in financial distress and pursuat to which the companies were placed in Business Rescue are not going to be resolved overnight.
  7. To improve the above will take time and whilst every effort is being made to ensure that adequate finance is available on a monthly basis. Negotiations with financial with financial institutions and financiers do not always bear immediate results and under these circumstances we have had situations where investors are inconveniences due to the late payment of interest. We apologise for this.
  8. In the meantime we have created a website for information purposes which will be known as www.orthotouch.co.za.
  9. Kindly further note that telephonic queries which were previously addressed to the business rescue practitioner and other parties must now be addressed to the following number 0860 742 742.
  10. Kindly note that, whilst this number was previously known as the "Pickvest Call Centre", relevant activities of Orthotouch are being handled by JPA Secretarial, through staff who are being trained to deal with all queries in an efficient manner.
  11. There are still a number of elements who prefer to see Orthotouch fail and the Highveld Companies to be liquidated. To such end reckless and inaccurate information is disseminated on a regular basis through the media. Investors are reminded that –
    1. despite the fact that interest payments have hitherto been delayed, all interest has been, paid up to date; and
    2. the Orthotouch deal affords investors the only realistic chance they have of redeeming their capital.
  12. We trust that you will find the above in order and will keep you updated as events unfold.

Yours faithfully
J. J. NEL

CHAIRMAN
ORTHOTOUCH BOARD OF DIRECTORS

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March 05, 2012

ORTHO CIRCULAR - AFRIKAANS

Geagte Meneer / Me.

ORTHOTOUCH BEPERK / HIGHVELD SYNDICATION 15 TOT 22 BEPERK (ONDER ONDERNEMINGREDDING EN ONDERNEMINGREDDINGSPLAN)

  1. Ons verwys na die vorige kommunikasie deur die ondernemingreddingspraktisyn gedateer 13 Februarie 2012, wat op die www.pickvest.co.za webwerf geplaas is en wat ook aan alle beleggers se beskikbare adresse gestuur is.
  2. Ons het die afgelope drie maande alles in ons vermoë gedoen om te verseker dat die nodige stappe gedoen word om die sake van die maatskappye in ondernemingredding onder Orthotouch se beheer te bring. Hierdie proses het beslag gekry in die goedgekeurde Ondernemingreddingsplan (ORP) van Desember 2011, en sluit die administrasie van die eiendomme wat van die Highveld-maatskappye en van Zephan Properties (Edms) Beperk ("Zephan") na Orthotouch oorgedra moet word, in.
  3. Ingevolge die ORP en die inwerkingstelling daarvan het ons daarin geslaag om te verseker dat die meeste dokumentasie wat nodig is om die ORP uit te voer, opgestel en deur die betrokke partye onderteken is. Dit sluit die volgende in:
    1. die ondertekening deur alle borge, insluitend die betrokke skriftelike borgstellingsdokumentasie ingevolge die ORP;
    2. die ondertekening van die oormaking en pand van aandeledokumentasie ingevolge die ORP, insluitend die werklike betrokke aandelesertifikate wat in trust gehou word; en
    3. die ondertekening van alle ooreenkomste wat nodig is om die oordrag van die eiendomme, wat ingevolge die ORP en die Orthotouch-ooreenkoms oorgedra moet word, in werking te stel – onderteken deur al die betrokke partye, insluitend Zephan (ten opsigte van die relevante eiendomme), die Highveld Syndication-maatskappye (ten opsigte van die relevante eiendomme) en Orthotouch – ten opsigte van al die eiendomme wat na Orthotouch oorgedra moet word.
  4. Die formele oordragproses word so spoedig moontlik afgehandel, en daar moet spesifiek klaringsyfers verkry word ten opsigte van die eiendomme wat oorgedra moet word.
  5. Die proses van die eiendomme se oordrag na Orthotouch is noodsaaklik om aan beleggers sekuriteit te verskaf vir hul beleggingsterugbetalings ingevolge die ORP.
  6. Beleggers word vriendelik versoek om geduld te beoefen terwyl die Orthotouch-proses geïmplementeer word, en om daarop te let dat die kwessies wat tot die Highveld-maatskappye se geldnood gely het – as gevolg waarvan die maatskappye in ondernemingsredding geplaas is – nie oornag opgelos gaan word nie.
  7. Dit sal tyd verg om bogenoemde reg te stel. Intussen word groot moeite gedoen om te verseker dat daar elke maand genoeg finansies beskikbaar is. Onderhandelinge met finansiële instellings en finansierders werp nie altyd onmiddellik vrugte af nie, en weens hierdie omstandighede het ons situasies gehad waar beleggers deur laat betaling van rente verontrief word. Ons vra om verskoning hiervoor.
  8. In die tussentyd het ons 'n webwerf vir inligtingsdoeleindes geskep, wat as www.orthotouch.co.za bekend sal staan.
  9. Let asseblief ook daarop dat telefoniese navrae wat voorheen aan die ondernemingreddingspraktisyn en ander partye gerig was, nou aan die volgende nommer gerig moet word: 0860 742 742.
  10. Hoewel hierdie nommer vroeër bekend was as die Pickvest-inbelsentrum s'n, word Orthotouch se betrokke aktiwiteite deur JPA Secretarial hanteer, wie se personeel opgelei word om alle navrae op 'n doeltreffende manier te hanteer.
  11. Daar is nog steeds sekere elemente wat graag wil sien dat Orthotouch ten gronde gaan en dat die Highveld-maatskappye gelikwideer word. Om dit te bereik, word onakkurate inligting gereeld op 'n onverantwoordelike manier aan die media bekend gemaak. Beleggers word daaraan herinner dat:
    1. alle rente tot op datum betaal is, hoewel sekere rentebetalings tot dusver vertraag was; en
    2. die Orthotouch-transaksie aan beleggers die enigste realistiese kans bied om hul kapitaal te red.
  12. Ons vertrou dat u bogenoemde in orde vind en onderneem om u op die hoogte te hou namate sake vorder.

Die uwe
J. J. NEL
VOORSITTER
ORTHOTOUCH-DIREKSIE

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Maart 05, 2012

WEBSITE UP AND RUNNING

We are happy to announce that the Orthotouch property website is now up and running. It will make it easier for new and existing clients to browse and view available properties, and book them for viewing through one of our representatives. 

Comments and suggestions are welcome.

February 27, 2012

TIPS FOR RENTING A COMMERCIAL PROPERTY

Property rental can be a major part of you operating costs. Depending on the type of business you are running it can easily make up between 10% and 30% of your annual operating expenses.

It is therefore important to rent the right premisis for your current and future needs. While scalability is important it is just as important to not commit to somthing that you can not afford when things go wrong, as especially with new businesses, not everything always goes according to plan.

It is a good idea to go through the checklist listed below before renting a premisis:

  • Find out the market rent in the area. This can be done by asking other shop owners or agents.
  • Is your rental within the norm of the area?
  • Is the length of the lease appropriate or are you entering a risky lease in if things go wrong?
  • Does the lease agreement include an unconditional break clause which will allow you to surrendor early?
  • Find out who will be responsible for repairs and insurance.
  • Find out about the license of the permisis. Does it allow your business current and future needs to operate within it license?
  • Check the local authority or ask the agents regarding levies and business rates that might be applicable outside the rental payment.
  • Check the contract to see if rent reviews are fair.
  • Does the landlord want personal guarantees from the directors of the business? If so is the personal risk that you are taking worth it?
  • Is surety required to sign the rental deal?
  • Can you provide good referneces, from the bank, suppliers and customers. Have you got good credit ratings?
February 27, 2012