An application for the sequestration of a family trust of former Fidentia boss J Arthur Brown has been settled out of court.

The application, brought by the provisional trustees of Brown's estate, was to have been heard in the Cape High Court on Thursday.

But according to the court file, the matter has been withdrawn from the roll following a settlement.

The trustees lodged the application in June this year against the Sunset Beach Trust, which owns a 1553 square metre prime beachfront site in Cape Town valued at R5.2-million.

Absa bank, which holds a mortgage bond on the property, had intervened in support of the application, and was a party to the settlement.

Brown and his wife Susan resigned as Sunset Beach trustees a year ago, leaving her father Stephanus Lategan as sole trustee.

Trustees of the couple's estate claimed Brown used the trust to launder money he had received from Fidentia.

They said the trust owed the Browns' estates at least R1.7-million.

Brown is facing a number of fraud and theft charges.

On Wednesday he and his wife were finally sequestrated.