By Chipo Musoko, HARARE, May 14 (The Source) – Plastic and steel products maker, Phoenix Consolidated which is currently under judicial management, recorded a turnover of $8 million last year compared to $2 million when the company was placed under administration nearly two years ago.
The company was placed under judicial management in October 2013 and suspended from the Zimbabwe Stock Exchange amid a battle to clear a $2,5 million debt.
“We stopped the bleeding and the company’s turnover has grown when we took over to $8 million from $2 million,” judicial manager, Reggie Saruchera told creditors during a meeting at the High Court on Wednesday.
He said the Central African Building Society (CABS) had agreed to loan the firm an additional $250,000 under the Distressed and Marginalised Areas Fund (Dimaf), a joint facility between government and Old Mutual created to bail out struggling companies.
The loan will attract an interest of 10 percent per annum.
Phoenix had previously borrowed close to $1,2 million from CABS, which it has since repaid.
“From the loan we can buy raw materials from China and South Africa and turn the business around,” said Saruchera, adding that the bank had requested property as security.
As part of the resolutions passed on the liquidation of the holding company, Apex Corporation, creditors also voted in favour of the loan.
“When we eventually sell the property, we will pay off CABS and then give the rest to creditors so the subsidiary can run profitably and attract investors,” said Saruchera.
Phoenix manufactures plastics and allied products as well as steel and allied products in Bulawayo and Harare.
Its subsidiaries are William Smith and Gourock, Phoenix Brushware, Scandia Wire, water pump maker JW Searcy and McMeekan.