UNITED STATES
                             SECURITIES AND EXCHANGE COMMISSION
                                   WASHINGTON, D.C. 20549
                                       ______________

                                          FORM 8-K

                                       CURRENT REPORT
                           PURSUANT TO SECTION 13 OR 15(d) OF THE
                              SECURITIES EXCHANGE ACT OF 1934


               Date of Report (Date of earliest event reported): May 9, 2006


                                 SILVERSTAR HOLDINGS, LTD.
- --------------------------------------------------------------------------------
                     (Exact Name of Registrant as Specified in Charter)


         Bermuda                    0-27494                      N/A
 ---------------------------       ----------                ------------
(State or Other Jurisdiction      (Commission               (IRS Employer
    of Incorporation)              File No.)             Identification No.)


            Clarendon House, Church Street, Hamilton, HM CX, Bermuda
- --------------------------------------------------------------------------------
  (Address of Principal Executive Offices)                      (Zip Code)


       Registrant's telephone number, including area code: (441) 295-1422


                                 Not Applicable
- --------------------------------------------------------------------------------
          (Former Name or Former Address, if Changed Since Last Report)

Check  the  appropriate  box  below  if the  Form  8-K  filing  is  intended  to
simultaneously  satisfy the filing obligation of the registrant under any of the
following provisions:

[ ]   Written  communications  pursuant to Rule 425 under the Securities Act (17
      CFR 230.425)
[ ]   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)
[ ]   Pre-commencement  communications  pursuant  to  Rule  14d-2(b)  under  the
      Exchange Act (17 CFR 240.14d-2(b))
[ ]   Pre-commencement  communications  pursuant  to  Rule  13e-4(c)  under  the
      Exchange Act (17 CFR 240.13e-4(c))




Item  8.01.  Other Events.

      On May 9, 2006, Silverstar Holdings,  Ltd. made a payment of $1,610,000 to
DKR  SoundShore  Oasis Holding Fund Ltd. for the redemption of $1,400,000 of the
principal  amount of its outstanding  $5,000,000  principal amount Variable Rate
Secured  Convertible  Debenture  due  October  31,  2008  (the  "Debenture")  in
accordance with the optional redemption provision of the Debenture.




                                   SIGNATURES

      Pursuant to the  requirements  of  Securities  Exchange  Act of 1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned hereunto duly authorized.


Date: May  12, 2006                        SILVERSTAR HOLDINGS, LTD.


                                           By:    /s/ Clive Kabatznik
                                               --------------------------
                                           Name:  Clive Kabatznik
                                           Title: Chief Executive Officer