Tetrad seeks to revive operations

Business Reporter
TROUBLED Tetrad Investment Bank is seeking to revive operations and is looking for investors to capitalise the financial institution.

This follows an implementation of a scheme of arrangement which was recently voted by its creditors, which involved partial payment and conversion of debt to equity.

Tetrad owed its depositors and creditors in excess of $67 million as at January 2015 when the financial institution was placed under provisional judicial management.

The proposed scheme also came after failed attempts to recapitalise the bank with proposals to liquidate it brought forward, but rejected as both creditors and depositors would not recover money.

According to the bank’s judicial manager, the Deposit Protection Corporation, the debt to equity swap results in a clean balance sheet with the bank’s equity approximating the minimum capital threshold of $25 million.

“The Provisional Judicial Manager is therefore calling on interested potential investors to submit their expression of interest in Tetrad.

“Interested parties are required to register their interest with Tetrad Transaction Advisors, BDO Tax and Advisory Services Private Limited.

“This invitation is not a prospectus and does not constitute or form part of any solicitation or invitation or any offer to the public to purchase any shares in Tetrad,” said DPC.

DPC was appointed Tetrad’s provisional judicial manager in July 2015.

By end of 2016, it had recovered $16 million from debtors according to the Reserve Bank of Zimbabwe’s update in January.

It second creditors’ meeting held in Harare and Bulawayo in September 2015, creditors voted for a resolution allowing the provisional judicial manager to implement a scheme of arrangement in terms of the Companies Act.

Meanwhile, the DPC is however still in the process of liquidating a number of failed banks including AfrAsia Kingdom Bank, Royal Bank, Interfin Bank and Allied Bank.

Source :

herald

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