Source: CSC moves to clear $2,3m debts – NewsDay Zimbabwe June 9, 2017
DEBT-STRICKEN meat processor, Cold Storage Company (CSC), last month convened a scheme of arrangement with its local creditors in a bid to off-set $2,3 million debt.
BY MTHANDAZO NYONI
According to a notice, the scheme of arrangement meeting was held on May 18 in Harare and chaired by Muchadeyi Ashton Masunda.
It sought, among other things, to clear CSC debt of $2,3 million it has with Wetblue Industries and employees.
“….the purpose of the scheme of the meeting is for concurrent creditors to consider and, if deemed fit, to agree (with or without modification) to the concurrent creditors scheme,” he said.
“Creditors of the applicant’s 100% subsidiary, Wetblue Industries amounting to $2,3 million consists of $1,8 million as outstanding wages to employees. These employees will be offered 20 percent of shares in the subsidiary company, and after 10 months, a payment of $2 000 per employee as full and final settlement of their outstanding wages,” Masunda said.
He said a 12 months’ standstill arrangement on payment of capital due to trade creditors of Wetblue would allow the company to attain steady production levels, and thereafter, payment in equal installments over a period of between 48 and 54 months.
The scheme also indicated a 12 months’ standstill arrangement on payment of capital due to trade creditors to allow for the company to attain steady production levels, and thereafter, payment in equal installments over a period of between 48 and 54 months.
CSC is currently saddled with a debt of over $25 million mainly from fixed costs such as wages, rates and taxes on land and has embarked on a turnaround strategy which was approved by government recently.
Government last month announced a CSC board that is expected to spearhead the Command Livestock programme and improve the national herd particularly in communal areas.
The new board chaired by Sylvia Khumalo Jiyane includes three members from the National Social Security Authority since it has invested in the company CSC.
CSC, used to earn Zimbabwe at least $45 million annually and handled up to 150 000 tonnes of beef and associated by-products a year and exporting beef to the European Union, where it had an annual quota of 9 100 tonnes of beef, has fallen on hard times due to mismanagement.
The firm is now operating at less than 10% of its capacity, and its employment numbers have fallen from 1 500 in the 1990s to the current 413 employees.