Zimbabwe’s sole glassmaker readies for liquidation

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THE country’s sole flint glassmaker, Zimbabwe Glass Industries (Zimglass), will meet creditors next week to pave way for liquidation.

Zimglass, a subsidiary of the Industrial Development Corporation (IDC), was placed under judicial management in June 2014. The company took the liquidation route after failing to attract investors owing to a $32 million debt.

The debt includes the $5,5 million borrowed for capital expenditure to revive operations after its shutdown in 2010 and a further $8,8 million in short-term loans from local banks used to rebuild the plant.

Zimglass chief executive officer, Gilbert Tapfuma, said the meeting with creditors has been scheduled for Thursday next week.

He said the outcome will determine whether or not the company goes ahead with the liquidation process.

“We should be having a meeting with creditors on February 10 and from there on we will have a clear picture on the course of action to take regarding the liquidation of the company. The judicial manager (Winsley Militala) has more details,” said Tapfuma.

Efforts to get a comment from Militala were in vain as he was said to be in South Africa on business.

The Gweru-based firm manufactures glass packaging material for alcoholic and sparkling beverages, food and pharmaceuticals. It is one of the troubled subsidiaries that IDC had intended to dispose of.

Zimglass’ major domestic customers include Delta Beverages, African Distillers, Mutare Bottling Company, Straitia Investments, Olivine Industries, Datlabs and E. Snell and Company.

IDC recently announced that it had not found any buyers with the “right strategic intent and capacity” to take over its companies.

Allied Insurance, Almin Metal, Amtec, Deven Engineering, G&W Industrial Minerals, Surface Investments, Stone Holdings and Zimbabwe Grain Bag are some of the companies that IDC intends to shed off.-Online

 

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