EH Walton, the oldest South African packaging firm, has been rescued from liquidation by its compatriot Golden Era, whose overdraft facility was frozen in Arpil by the First National Bank (FNB).
First National Bank (FNB) dropped liquidation application for EH Walton in April, allowing it to resume a business rescue after the Port Elizabeth High Court rejected the bank’s appeal, reported businessday.co.za.
About 215 jobs would be retained through the deal with Golden Era making purchase of EH Walton’s brand and premises.
According to EH Walton, after FNB recognized the validity of the business-rescue proceedings, the company was looking to restart trading.
EH Walton’s attorney Michael White said the firm was being liquidated about two months back and was closed for business when the overdraft froze.
"Hundreds of jobs were going to be lost and the city was going to lose one of its economic institutions." emphasized White.
Golden Era is said to have adapted the rescue to Golden Era’s proposed buyout plans.
EH Walton develops packaging for the automotive, confectionary, liquor and pharmaceutical sectors, and has invested ZAR22m ($2.65m) in modern equipment to enhance efficiency.