Judicial manager hawks Tetrad for $25mln

Judicial manager hawks Tetrad for $25mln

HARARE, May 5 (The Source) – The Deposit Protection Corporation (DPC) is looking for new investors to acquire Tetrad Investment Bank for $25 million after creditors agreed to accept shares and cash, leaving the troubled bank with a clean balance sheet.

The DPC is acting as Tetrad’s provisional judicial manager.

The bank tabled a debt-to-equity conversion offer and partial cash payment to proven depositors and creditors in March, which was accepted by the creditors, said the DPC.

The scheme also moved the bank’s financial position from a negative $35 million to a positive $25,6 million, which the DPC believes will make it an attractive investment option.

“The Provisional Judicial Manager is therefore calling on interested potential investors to submit their expression of interest to acquire in whole or in part, equity interest in Tetrad,” said the DPC in a statement.

Depositors and creditors were owed a total of about $67,4 million as at January 2015 when the bank was placed under the provisional judicial management.

The DPC was appointed the provisional judicial manager of Tetrad  on July 1, 2015 and had, by the end of 2016, recovered about $16,2 million from the various debtors, according to a January 2017 update by the central bank.