FOOD processing entity, Victoria Foods and its sister company, Crest Poultry Group will soon be relieved of judicial management, the firms’ parent company has confirmed.
Addressing stakeholders on the sidelines of a CFI Holdings Limited Annual General Meeting recently, group board chair, Itai Pasi said steps were being taken to rescue the entities.
“We have furnished the judicial manager with proposed schemes of arrangements for both entities in order to exit judicial management. The group stands ready to take both entities out of judicial management once an agreement is reached with the creditors,” Pasi said.
She confirmed that engagements with the Judicial Manager and creditors are currently underway and shareholders will be appraised of progress made in due course.
The CFI chair was delighted with that the group’s balance sheet is stronger and well positioned to underwrite further growth in the forthcoming year.
He said the strategic focus in the second half of the year will be leverage control of entities under Judicial Management.
The entity has to date managed to clear RTGS$1.1 million worth of borrowings.
Analysts project that Victoria Foods revenues will progressively rise from RTGS$25 million in 2018 to $40 million by 2020. The entity’s installed milling capacity is 147 000 tonnes per year.
Victoria Foods, once a giant milling company, is a subsidiary of agro-industrial concern CFI Holdings.
It was forced to lay off its employees after it was placed under judicial management in 2016.
Crest Poultry Group also went under judicial management after experiencing similar problems.
CFI Holdings Limited manages a separate entity offering services for the development and management of real estate in Zimbabwe.
STALAP Investments is now the largest shareholder in CFI Holdings Limited after increasing its stake in the company to over 40 percent. STALAP is an investment vehicle owned by Zimre Holdings.
Its retail outlets include Farm & City and Vetco Animal Health.
Its specialised divisions include Victoria Foods, Saturday Retreat Estate, Reston Developers and Maitlands Zimbabwe Limited. Poultry is marketed and distributed through Agrifoods, Agrimix, Hubbard Zimbabwe, Glenara Estates, Crest Breeders International and Suncrest Chickens.