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Sources said BRI, a maize and flour miller, obtained US$2,5 million from the bank to be repaid by July this year.
But he company has paid only US$500 000 so far.
Despite the outstanding debt, Herald Business is reliably informed that Blue Ribbon is negotiating for a “top-up” of another US$2,5 million as it had pledged assets worth about US$5 million as security.
“The biggest challenge is that the company must continue to operate at low capacity, affecting its ability to repay the loan at the agreed time,” said one source, speaking on condition of anonymity.
“It will, however, work better for the company if it gets an additional US$2,5 million, as this would enable it to increase capacity to more than 60 percent.”
BRI mills and factories are operating at levels around 20 percent of capacity. The chief executive, Mr Mike Manga, could not be immediately reached for a comment by the time of going to press as he was said to be away. With the shortage of maize and wheat on the local market, milling companies are importing at least 70 percent of their grain requirements.
BRI has a number of brands, including Blue Ribbon Foods, Nutresco Foods, Stockfeeds Unit, JA Mitchell’s and BRI Logistics.
Blue Ribbons Foods is one of the largest milling companies in Zimbabwe, known for its popular brands such as Ngwerewere and Chibataura in the maize meal range and Blue Ribbon in the flour range.
The stockfeeds unit is involved in production and marketing of livestock feeds in addition to offering technical advice to customers.
It produces a wide range of broiler, layers and pig feeds. JA Mitchell’s, incorporating Aroma Bakeries, is the group’s baking arm. The PTA Bank has continued to support local private companies at a time when the economy is facing serious liquidity challenges.
Last year, the regional bank advanced US$150 million in project finance windows to the private sector and lines of credit to the financial sector.
Bongani Ndlovu