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Munyaradzi Musiiwa, Business Correspondent
LISTED agro-industrial processor and retailing firm, CFI Holdings Limited has courted investors to inject a combined US$33 million to recapitalise two of its divisions.
Sunday News Business has it on good authority that CFI Holdings managed to lure two investors for the recapitalisation of its food milling company, Victoria Foods and stock feed producer, Agrifoods, with each receiving a capital injection of US$18 million and US$15 million respectively.
The two entities were placed under provisional judicial management in 2016 to allow for debt restructuring, re-organisation and recapitalisation of the entities. Mr Regis Saruchera of Grant and Thornton was appointed the provisional judicial manager.
The two companies are making efforts to enter into a scheme of arrangement with their creditors in order to exit judicial management. Various creditors had obtained orders and writs of execution against the company assets.
Mr Saruchera confirmed that the two entities had sought investors to revitalise their operations but could not be drawn to divulge more information.
“We don’t want to jeopardise the negotiations that we are having at the moment. However, we are making frantic efforts to revive the two companies and indications are that they might be back on track soon. We have courted investors for the two companies, Agrifoods and Victoria Foods. We will, however, divulge more information once we have concluded everything,” he said.
Addressing stakeholders on the sidelines of a CFI Holdings Limited Annual General Meeting recently, group board chair, Itai Pasi said the group’s balance sheet was stronger and well positioned to underwrite further growth in the forthcoming year.
He said the strategic focus in the second half of the year will be leverage control of entities under judicial management.
The entity has to date managed to clear RTGS$1,1 million worth of borrowings.
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