Harare – Agro-Industrial concern Border Timbers Limited is planning to exit judicial management within the next six months pending the settlement of the on-going dispute with creditors over US$125 million awarded to the company by the International Centre for Settlement of Investment Disputes (ICSID).
Judicial Manager Peter Bailey previously in a statement accompanying the Company’s trading update for the 11 months to 31 May 2019 advised that although the award is final and binding there is currently no clarity around the Government’s timetable for settlement and how the award will be shared between the Company and other claimants.
“The exit of the Company from Judicial Management is delayed as a result of this,” Bailey said.
The entity was placed under judicial management back in 2016 after failing to service debts to several financial institutions worth $20 million.
In an interview with Equity Axis on the side lines of the Company’s EGM held in the capital on Wednesday 4th September 2019, Mr Bailey said the Company has since become profitable and debts have been repaid since the inception of judicial management.
“When I took over the company was making losses so we had to do various reconstructions and it has taken a little while but the company is very profitable now generating cash and has paid off all the pre-judicial management debts leaving outstanding debt to one foreign bank DEG,” Mr Bailey said.
“We will be very happy to step down as judicial manager as soon as we can sort out the issue of how we received the settlement.”
He said this could happen within the next six months depending on the finalisation of outstanding issues.
“I have no idea, it’s not going to be very quick, maybe six months or something but it all depends on the negotiations with Government and so on.”
He expressed satisfaction of the current state of the Company and expressed optimism towards its future operations.
Equity Axis News