PG Industries’ creditors to get paid
PG Industries’ creditors will be paid their dues within five days of the registration of the firm’s secondary scheme of arrangement by the Registrar of Companies on October 19, the company has said.
The company, which has been bought by an Indian firm, Dewei Investments, is proceeding to make payments based on amounts owing as at December 31, 2015 as per scheme terms.
“In terms of the scheme, payments to scheme members and creditors will be made within five days after fulfilment of the last condition precedent. Registration of the scheme by the Registrar of Companies is the last condition to be fulfilled,” said PG Industries company secretary, Ms Kudakwashe Waniwa.
“Payments will be made as approved at the scheme meetings in September 2016.”
Shareholders will be paid 0,0058 cents per share with secured lenders expected to be paid amounts owed as at December 31, 2015 less a 10 percent discount while preferred creditors will be paid 100 percent of the stated amounts. Concurrent creditors will be paid 19,7575 cents per dollar owed as at December 31, 2015 as full and final settlement of amounts owed as at that date. In 2016, Dewei Investments entered into an agreement with PG Industries to take over the entire issued share capital of the struggling construction materials firm for $500 000 after shareholders approved the transaction.Part of the deal was that Dewei would pay all of PG’s creditors by November 30, 2016, but it failed to meet that initial deadline. Dewei has also made a commitment to providing new working capital and funds required for retooling the company. But despite initial plans to start making quarterly payments to unsecured creditors in October 2015, the company announced during the same month that it was unable to make the payments to concurrent creditors due to cash flow constraints, and was in negotiations with a “prospective investor” (which turned out to be Dewei Investments) for re-capitalisation. PG Industries’ shares were suspended from trading on the Zimbabwe Stock Exchange (ZSE) in 2013. — @ okazunga