Creditors block takeover bid

GWERU-BASED glass-maker, Zimbabwe Glass Industries (Zimglass) has received an offer for the takeover of the company, but some creditors are against the bid.

Zimglass, a subsidiary of Industrial Development Corporation (IDC), which has been insolvent since 2010, voluntarily applied for judicial management in 2014 citing lack of capital, debt overhang and mismanagement. Its assets stood at $19,2 million, while its liabilities were at $31,2 million.

The country’s sole flint glass manufacturer was subsequently liquidated.

Judicial manager Mr Winsley Militala said the offer was being considered by stakeholders, but a bank which was part of the creditors of the liquidated glass manufacturer dismissed the offer as too low.

“One offer is currently at hand being considered by the stakeholders, (and) one bank (creditor) has of course dismissed the offer as too low,” he said.

“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.”

Financial institutions owed money by the Gweru based glass-maker 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 on taking over Zimglass. Nampak requested Zimglass’ balance and financial statements which were availed. Since Nampak’s expression of interest, there was no movement from the firm.

Before liquidation, Zimglass manufactured glass packaging material for alcoholic and sparkling beverages, food, liquor and pharmaceutical segments. Its major domestic customers included Delta Beverages, African Distillers, Mutare Bottling Company, Straitia Investments, Olivine Industries, Datlabs and E. Snell and Company.