TEXTILE company, Merlin, has filed an application for disposal of non-core and obsolete assets to raise additional working capital for repairs and ongoing maintenance work, an official has said.
Merlin judicial manager Cecil Madondo told NewsDay that the application was filed on March 19, 2018 in terms of section 307(1) of the Companies Act (Chapter 24:03).
“A provisional judicial manger or final judicial manager shall not, without the leave of the court, sell or otherwise dispose of any of the company’s assets except in the ordinary course of the company’s business,” Madondo said.
“. . . we will proceed to dispose of the assets once the order has been granted to raise additional working capital for repairs and maintenance work which is ongoing. We will keep you updated in that regard.”
In his progress update report presented at the creditors’ meeting held in Bulawayo recently, Madondo said repairs and maintenance work was still ongoing in the other departments and had targeted to complete the dyeing division, which already has orders waiting for dyeing and bleaching.
He said the National Social Security Authority, which is involved in the commissioning of the boiler, had already visited to inspect the boiler, while the mechanics and engineers were working on fixing it.
Merlin resumed operations early this year, albeit, on a small-scale, after one of its creditors poured in $2,1 million minimum working capital.
It has been under judicial management for over a decade.
In the short-term, the company needs $2,1m, in the medium term $4,5m and in the long term, $23,4m. In total, it needs $30m.
Equity Axis is an online financial media service platform focused on African markets offering real-time stock quotes, news, analysis and data.