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Harare Bureau
DRUG manufacturing company, Caps Pharmaceuticals has collapsed after the firm’s factory premises in Southerton industrial area in Harare was last week auctioned for $1,5 million cash. This was after the Sheriff of the High Court ordered the sale of some of its assets to repay money owed to CBZ Bank.
The sale, however, can be challenged within seven days from the date of auction. 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, cold rooms, receiving bays, a clinic and a guardroom.
Businessman Mr Fred Mtanda is the controlling shareholder of the company which is involved in the manufacturing and distribution of pharmaceuticals. He could not be reached for a comment last Friday.
The fate of the company’s workers could not be established. But upon the completion of the sale and transfer of the property, the buyer will have powers to evict the workers from the premises.
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 30 November 2011 before delisting.
It said then that the de-listing would pave way for restructuring of the business that would see new investors coming in to inject fresh capital.
The pharmaceutical concern ended a 42-year presence on the bourse, trading at $0,10c per share and valued at $3,5 million.
Cabinet had recommended that Government, through the Industrial Development Corporation of Zimbabwe Limited, should save the pharmaceutical giant from collapse by taking over its debts.
In April last year, the Deputy Sheriff attached Caps Holdings assets to recover $4 million owed to CBZ Bank.
In May last year, Caps Holdings chief executive Mr Jealous Nderere told our sister paper, The Sunday Mail, that the company was failing to settle its debts, including paying salaries because it was not making enough money.
“As a company, we are currently going through many difficulties.
“We are, however, running around and working on the measures to ensure the workers receive their backdated salaries,” he said then, adding that the shareholders were in the middle of raising cash to finance operations.
Online Reporter