Hubbard, Friedrichsen rejoin Queensgate board

{ Posted on Aug 14 2013 by B-man }
Categories : Travel news

Less than a month after they resigned from the board of directors of Queensgate Hotels and Leisure, Andrew Hubbard and Holger Friedrichsen, the founders of the business which is now focused on development in the leisure and tourism industry, have been reappointed.

Their reappointment to the board was announced on April 1. The company says that their reappointment will significantly assist the board, and Arcay Corporate Finance in the restructuring process currently in progress. Details of the process are still to be announced.

Two other directors of QHL, L Sipoyo and Tham Tham Nziba, have resigned as non-executive directors of the company with effect from April 1. The board expressed its appreciation for their services and contribution to the company.

The steering committee appointed to assist in the investigation and restructuring of the company`s affairs has now completed its task. Shareholders have been advised to continue to exercise caution in trading Queensgate shares on the JSE Limited until a further announcement is made.

The decision by Hubbard and Friedrichsen to resign early in March followed weeks of rumours in the tourism industry relating to problems in the Cape Town-based group. Hubbard was CEO and Friedrichsen an executive director. Hotel & Restaurant understands they remain major shareholders although the price of Queensgate shares has slumped.

Their business relationship goes back more than 20 years. They started a real estate company in 1992 and their involvement in the South African hotel industry began in 1997 with an investment in what was then the Villa Via Hotel at the Cape Town Waterfront.

Their decision to quit came just days after Queensgate announced that a steering committee had been appointed to probe problems at the company. QHL also warned that it expected to report a sharp decline in earnings for the six months to the end of February.

In an official statement at the time, Queensgate said: “The variance is mainly due to the poor trading and economic environment in which Queensgate has operated over the last 12 months.

“In addition, the variance also relates to the recent cancellation of certain major leases some of which were held with Queensgate Holdings Limited, an associate and major shareholder in Queensgate, which cancellation has had a direct major impact on Queensgate. The cancellation of such leases has resulted in a decision by the directors to impair goodwill and unwind the prepaid operating lease asset through the statement of comprehensive income.”

Hubbard and Holgerson resigned to avoid any potential conflict of interests that may arise in future and to facilitate restructuring that may be required by the company.

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