KAROS Hotels said on Friday its trading subsidiaries has been put in provisional liquidation after the failure of talks with five banks on a financial restructuring for the troubled group. Karos, whose majority shareholder is Switzerland’s Movenpick Hotels and Resorts, said it has advised the Johannesburg Stock Exchange to suspend its shares from the start of business on Friday.
He said group hotels are unable to service the “substantial interest and rental burden” of R35-million a year. Karos said its trading subsidiaries had been put into provisional liquidation with immediate effect in a bid to ensure that its payroll and immediate overheads were met by the intervention of liquidators.