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Bank.
The sale, however, can be challenged within seven days from the date of auction. “We are appealing because we had made arrangements to pay some of our debts,” said Mr Mtandah in an interview.
He said the company had paid US$750 000 to CBZ Bank and made an obligation to pay another US$750 000 by the end of this month. Mr Mtandah said the auctioned property could be worth US$6 million.
“The bank should have reversed the sale of the property because within two weeks, I would have paid that US$1,5 million,” he told a local daily. “Is there a motive for selling a property worth US$6 million for US$1,5 million?”
The auctioned assets include a drug manufacturing plant, a three-storey administration block with 47 offices, a kitchen, bar with a dispensary section, packaging sections, coldrooms, receiving bays, a clinic and a guardroom.
Caps used to be the country’s largest drug manufacturing company before it plunged into a financial crisis.
The company last traded on the Zimbabwe Stock Exchange on November 30, 2011 before delisting.
Delisting was meant to pave way for restructuring of the business which would see new investors coming in to inject fresh capital. The pharmaceutical concern ended a 42-year presence on the bourse, trading at US0,10c per share. Cabinet had also recommended that Government, through the Industrial Development Corporation of Zimbabwe Limited, chip in to save the pharmaceutical giant from collapse by taking over its debts.
Employees are in panic mode after the sale of the company’s factory. They have been largely apprehensive because most of them have gone for six months without pay. Some workers who spoke to Herald Business said they had not been paid since January.
“The management is silent on the whole saga. We now hear that the company has been sold and we don’t know what will happen to us and how we are going to be paid our outstanding salaries,” said one worker.
Online Reporter