NMB Bank stands to lose $2,1 million as wholesale firm collapses

NMB Bank stands to lose $2,1 million as wholesale firm collapses

By Plaxedes Sibanda, HARARE, March 18 (The Source) – NMB Bank is likely to lose $2,2 million following the collapse of a wholesale and retail firm it had loaned money to, the High Court heard on Wednesday.

Jacks Trading Limited, whose clientele are mostly small retailers, owes NMB Bank close to $2,2 million according to the liquidator, Winsely Militala. The company, whose assets are worth $145,000 is owing creditors $3,9 million after it collapsed last year due to insolvency.

“The shareholding of the company has been ceded to NMB Bank Limited for monies advanced,” he said.

Militala said the former wholesaler was likely to recover only $40,000 of its debt as most of the debtors (tuckshop owners) could not be located while others had since closed shop.

“The state of affairs is not friendly,” he said.

“The recovery of debtors is proving quite problematic, to date we have only managed to recover $1,167. The biggest debtor, Kanyedze Trade Centre which owes the company close to $40,000, was handed over to lawyers who have failed to give us a status report at the time of finalising this report.”

Militala said assets, including motor vehicles sold through an auction only realised a paltry $2,000 while other assets generated $40,000 which was used to pay workers.

The company, which was placed under provisional liquidation last August, had sold most of its assets according to Militala.

“The company’s movable assets will not realise much. The debtors will be pursued and nothing much is expected from them considering that most were tuck shops and were working from rented street corners,” he said.

However, he said there was no danger of creditors being requested to contribute towards the liquidation costs.