Steelnet Zimbabwe set to be sold for $4.9 million

By Chipo Musoko, HARARE, August 15 (The Source) – Manufacturing firm Steelnet Zimbabwe Limited, which was placed under final liquidation in May this year, will be sold for $4.9 million after creditors approved the sale of the collapsed company last week, its liquidator said on Thursday.

In his first liquidator’s report dated August 7, Christopher Maswi of Fairvalue Management Consultancy said he had secured buyers for the group’s three divisions – Tube and Pipe Industries (TPI), BMA Fasteners and Hastt Zimbabwe.

TPI received the highest bid of $2.1 million from Africa Steel while Consolidated Harvard Holdings offered $1.8 million for BMA Fasteners and Decoct Investments, $1 million for Hastt Zimbabwe.

“Creditors representing more than 60 percent voted to accept the bids,” Maswi told The Source on Thursday.

The company is now being sold at almost half its value of $10.8 million while creditors are owed over $11 million.

“In the current economic environment characterized by liquidity challenges, the actual cash realization is likely to be lower,” said Maswi.

The biggest creditors are workers who are owed $6.1 million followed by CBZ Bank, $1.7 million and SMM Holdings Pension Fund $1.1 million.

Other creditors include the Zimbabwe Revenue Authority which is owed $484 000; Africa Steel, $355 00; National Social Security Authority, $348 000; ZESA, $230 000 and TelOne, $132 000.

At the last meeting employees expressed dissatisfaction about the prices at which the assets were being disposed.

Steelnet operates Tube and Pipe, which produces metal pipes; BMA Fasteners, which makes industrial fasteners and mining bolts and Haastt, which makes tractor and animal-drawn agriculture implements.

The company’s operations have been hampered by lack of capital resulting in it being placed under judicial management in 2011 and the subsequent liquidation