EAST LONDON, SOUTH AFRICA – The courts have suspended the liquidation process of Yekani Manufacturing’s R1 billion (US$66.7 million) EMS factory, according to reports.

The firm planned to liquidate after being unable to repay a R200 million ($13.3 million) loan. The company planned to terminate some 500 employees here.

Instead, the liquidation has been suspended, pending a hearing on the business rescue application.

A company creditor is objecting to the plan, however. Standard Bank plans to oppose Yekani’s business rescue application in court, say reports.

Yekani opened the site in June 2018 to build tablets, laptops and handsets. The 28,000 sq. m. factory is equipped with eight SMT lines.