SMM to sell properties, land to clear debt

Source: SMM to sell properties, land to clear debt | Herald (Business)

Fallen asbestos producing  giant, Shabanie Mashava Mines Holdings (SMM Holdings), plans to  dispose land and properties it owns to help pay off debts and  recapitalise to resume operations.

The company was mothballed nearly 15 years ago and placed under the management of an administrator, choked by massive debts mainly to  the government.

Restarting operations has remained a dream due to slow and complicated procedures, legal and otherwise, that have had to be followed.

As part of the restructuring process under the Reconstruction of State Indebted Insolvent Companies, Government became a major shareholder in the firm following a debt to equity conversion, taking control from businessman Mutumwa Mawere.

The firm’s administrator, Mr Arafas Gwaradzimba of AMG Global, said as part of the company’s revival, plans were in progress, under a  Government-sanctioned scheme, to dispose of massive land and properties owned by the firm in the Zvishavane and Mashava towns.

“The scheme’s main purpose is to raise funds in order to clear the company’s indebtedness, and to enable it to resume its mining operations which are its core business, Mr Gwaradzimba said.

“Accordingly, in the scheme, the administrator proposed that the company creates freehold land, subdivides this freehold land resource,  and raise capital through the sale of the said freehold land.”

While the total funds required to clear the debt and kick start operations was not immediately clear. –  New Ziana.

COMMENTS

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    Mukanya 12 months ago

    Once a ZANU PF finger is poked into a flourishing entity the obvious becomes a reality – complete failure!!