Creditor turns down Zimglass takeover bid

ONE of the major creditors to Gweru-based glassmaker, Zimbabwe Glass Industries (Zimglass), has turned down a proposed offer to take over the company.

Zimglass, a subsidiary of Industrial Development Corporation (IDC), has been insolvent since 2010 and voluntarily applied for judicial management in 2014 citing lack of capital, debt overhang and mismanagement.

At that time its assets stood at $19,2 million while liabilities were at $31,2 million. The country’s sole flint glass manufacturer was subsequently liquidated.

Judicial manager, Mr Winsley Militala, said while an offer was being considered by stakeholders, one of the creditors, a banking institution, was opposed to the offer saying it was too low.

“One offer is currently at hand being considered by the stakeholders. One bank (creditor) has dismissed the offer as too low. For confidentiality, I cannot disclose the name of the interested party. As stated, we will simply endeavour to find a taker for the company assets,” he said.

Mr Militala would not be drawn to disclose detailed information about the takeover talks and the figures involved. Financial institutions owed money by the Gweru based glassmaker include the now defunct AfrAsia Zimbabwe, ZB Bank, Agribank and FBC Bank.

Towards the final liquidation of Zimglass last year, Johannesburg Stock Exchange listed Nampak, which specialises in glass, plastics, paper and tin packaging made inquiries in taking over Zimglass.