HARARE, January 26 (The Source) – The judicial manager of agro-industrial concern Border Timbers, Peter Bailey says the company will fully recover but will only pay off its $10 million liabilities over an eight-year period.
The company was placed under final judicial management in March 2016 after failing to service debts to several financial institutions worth $20 million.
Bailey told a creditors meeting at the High Court on Thursday that the company will be able to fully pay off its debts.
“It looks as if all creditors will be paid over a period of eight years based on the cash flow; obviously as cash flow improves, payments will also improve….It’s a long time but at least the creditors will have their payment in full,” said Bailey to a question on the payment time frame.
As at 30 June 2016, Border Timbers’ total current liabilities stood at $10,6 million.
Net cash generated from operating activities marginally increased by a percent to $3,9 million from the previous year.
The company is working on the approval of a scheme of arrangement.
“If approved that will enable the company to come out of judicial management because the company has been operating successfully,” said Bailey.
He added that a foreign major creditor is yet to approve the scheme of arrangement, delaying the process.
The approval of scheme of arrangement is also expected to unlock the process of paying creditors.
“The current year has not started off as well as last year due to a number of reasons including a slow down because of Zambian elections and veld fires. However my understanding is that the company will catch up during the first quarter,” said Bailey.