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Tinashe Makichi Harare Bureau
Chinese firm Belle Holdings has offered to inject $50 million into the struggling Interfin bank to save it from liquidation. The Reserve Bank of Zimbabwe has since given the foreign investor up to December 24 to provide proof of funds and a letter of commitment if the bank is to be rescued from liquidation.
RBZ wrote to the bank’s curator Peter Bailey in September this year recommending that a board resolution be passed to the effect that the Bank’s licence be surrendered for cancellation.
The central bank advised the curator to give the board an authority to exercise that power as this would be in the best interest of depositors and other creditors.
Interfin chairman Tim Chiganze told the bank’s EGM that following the request a board meeting noted that there were two potential investors that are still very keen to invest in the bank. “That proposed resolution failed. It was also noted the bank could pursue settlement of debts by assets as opposed to cash only.
This would ensure that the depositors and other creditors’ value was preserved or protected,” said Chiganze.
“It was agreed with the central bank that the extension of the curatorship would be conditional upon evidence of a concrete recapitalisation plan to be submitted to the RBZ by no later than December 11.”
Chiganze said it was further agreed that an anchor shareholder was required for the capitalisation and balance sheet restructuring of the bank. “The current serious potential investor (Belle Holdings) was requested to provide proof of funds and an irrevocable letter of commitment by December 24, 2014 and these being the conditions upon which the current curatorship would be extended.
“Failure to meet the above mentioned conditions shall result in the bank being placed under provisional liquidation, for 3 months, at the expiry of the current curatorship period ending December 31, 2014,” said Chiganze.
In turn Belle would acquire a majority stake in the troubled financial institution.
He said if the conditions are met before the end of the month or during the provisional liquidation period, the liquidation would be put on hold to allow the resuscitation of the bank.
However there won’t be any need for the bank directors to surrender the bank licence.
Online Reporter