Tetrad creditors want forensic audit of bank
value of the assets that are recoverable by the liquidator and hence value recoverable to the creditors,” the creditors said.
The committee said it recognised that the reconstruction of TIB was possible and would possibly give the best outcome for creditors.
However, creditors said given that TIB was presently trading at a loss, the cost of the Scheme of Arrangement and the Provisional Judicial Management were being borne solely from the assets of TIB. The assets were the only source of value available to creditors to recover their value.
Creditors said the costs of running the bank was being met from the assets.
“The objective of initiating a forensic examination is to improve the potential for recovery of assets and the accountability for assets and the recovery of value for the creditors,” TCG said.
Creditors said while management, directors and shareholders had indicated that the Winsley Militala report was flawed and inaccurate, they had neither engaged the creditors with an alternative source of information nor refuted the detail which the Provisional Judicial Manager (PJM) had reported.
“The absence of a response and information of the ‘flaws and inaccuracies’ creates the impression that the PJM’S report carries a semblance of the truth even if one discounts some of the detail. The overwhelming understanding of the information in the PJM report is that ‘there is no smoke without fire’ and until a response is made by management, directors and shareholders, there is no alternative source to ‘ pour water’ on the ‘fire’ and provide the ‘truth’,” the creditors said.
“It is also obvious, that having engaged other parties to undertake due diligence of the bank, that is, Finance Bank of Zambia, Horizon Capital Consortium Holdings and AAY of Panama, prior to their engaging in a recapitalisation, these organisations have not completed their engage- ment.”
The bank was placed under judicial management by the High Court of Zimbabwe in February this year to safeguard the interests of depositors and creditors.
TIB assets are worth $42,7 million with liabilities worth $70 million and creditors were told that they were likely to get 10 cents for a dollar should the bank be liquidated.