adminfacing huge operational problems that included a US$11 million debt.
Mr Reggie Saruchera of Grant Thornton Camelsa, who is the provisional judicial manager, said the resolutions were passed at a meeting held recently.
The resolutions included giving preference to post –judicial management creditors, disposing of specified group assets and restructuring of the group.
Mr Saruchera said the restructuring process would include securing an appropriate investor and concluding settlement arrangements with creditors.
“It will also include negotiating debt to equity swap arrangements and arranging appropriate loan facilities and where necessary encumber assets of the group.”
The purpose of placing companies under judicial management is to allow the affected companies to be nursed back to financial health thus permitting them to resume trading as successful enterprises.
The Reserve Bank of Zimbabwe, which held a 63 percent stake in Cairns through its investment unit Finance Trust of Zimbabwe, recently pulled out of the company. The group said it required in excess of US$40 million for recapitalisation. – New Ziana.
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