Altfin Insurance to be liquidated, creditors owed $3,3 mln

Altfin Insurance to be liquidated, creditors owed $3,3 mln

By Chipo Musoko, HARARE, July 10 (The Source) – Altfin Insurance, whose licence was cancelled at the beginning of this year, will now be liquidated with some creditors likely to recover 20 percent of the amount they are owed as the company’s liabilities exceed assets, The Source has established.

Zimbabwe’s insurance regulator, the Insurance and Pension Commission (IPEC) in January cancelled Altfin’s operating licence after it failed to raise the required minimum capital of $1,5 million.

It was also heavily exposed to the collapsed Interfin Bank and failed to settle total gross outstanding claims amounting to $3 million as at December 31, 2013.

In a report to creditors seen by The Source on Friday, the company’s provisional  judicial manager, Christopher Maswi of Fairvalue Management Consultancy said the company could not continue its operations since its licence was cancelled.

Its assets are worth $2 million while liabilities stand at $3,3 million.

Preferred creditors will recover the full amount owed while concurrent creditors will get 21 percent of the owed amount.

“The business cannot trade without a licence and therefore should be wound up and distribute proceeds to creditors,” said Maswi, adding that there was need to bring finality to the matter and avoid further costs build up.

The company is also facing several litigation cases worth $1,4 million with Myramma Farm being owed $1,2million while Cottco is owed $96,500.

Creditors have since agreed to have the company liquidated since they have no other option.

Altfin Insurance is a subsidiary of Altfin Holdings Limited. The parent company also has full shareholding in Altfin Life Assurance which was suspended and Altfin Health.