Cred­i­tor turns down Zim­glass takeover bid

Chronicle (Zimbabwe) - - Business Chronicle - Love­more Zi­gara Mid­lands Bu­reau

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.

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