Bid to set aside Highveld Syndications rescue scheme dismissed

The High Court in Johannesburg has dismissed the Highveld Syndication Action Group's application to set aside the controversial 2014 Scheme of Arrangement, which tasked Orthotouch to repay investors in the former Highveld Syndication schemes with costs.

- Ryk van Niekerk

The ruling is a significant setback for Highveld Syndication Action Group's broader class action efforts to recover the approximately R4.6 billion invested by about 18 000 people in the Highveld Syndication schemes.

The dispute dates back to the collapse of the Highveld Syndication schemes in 2011, when they were placed in business rescue.

In 2014, the court approved a Section 155 Scheme of Arrangement to restructure the group. The plan prescribed that all former Highveld Syndication-related properties be transferred to Orthotouch, which was tasked to repay investors. The late Nic Georgiou and related entities underwrote the scheme.