CSC moves to clear $1.5m debt

Oliver Kazunga, Senior Business Reporter
THE Cold Storage Company (CSC) will next month convene a scheme of arrangement with its creditors including foreign creditors who are owed about $1.5 million.

The ailing parastatal intends to turn its operations around riding on capital injection from the National Social Security Authority (NSSA), which will see the company spearhead an aggressive Command Livestock production programme in the country.

Zimbabwe banks on CSC’s revival to resume massive beef processing and exports, which are expected to earn the country millions of dollars.

A notice issued yesterday indicates the scheme of arrangement, which has been sanctioned by the High Court, is set to be held on May 18 in Harare.

“The scheme meeting will be held . . . on Thursday, 18th May 2017. The purpose of the scheme meeting is for foreign creditors to consider and if deemed fit, to agree (with or without modification) to the foreign creditors scheme, the basic characteristics of which are that: the Government of Botswana will be paid $177 000, the Botswana Meat Commission $1.2 million and the French Protocol will be paid $89 000,” said chairperson of the scheme meeting, Mr Muchadeyi Masunda.

He said thereafter the Government of Botswana and the Botswana Meat Commission would supply CSC with 24 000 cattle over a period of 24 months with payments being made for the cattle by the applicant on a monthly basis.

The foreign creditors will be entitled to attend and vote at the scheme meeting.

A scheme of CSC employees was also expected to be held the same day for the purpose of secondary scheme of arrangement being proposed to the company’s employees.

Basic characteristics of the scheme include a 10 months moratorium on payments to present workers, the CSC shall pay $290 000 into the Pension Fund at the commencement of the restructured operations and the company shall thereafter have 10 months moratorium on payments to the pension fund.

It is also hoped that a scheme meeting will be held for lenders with basic characteristics that among others include first monthly repayments that covers capital and interest amounting to $50 401 shall commence on June 30, 2018.

Last week, the Government announced a CSC board that is expected to spearhead the Command Livestock programme and improve the national herd particularly in communal areas.

The new board includes three members from the National Social Security Authority (NSSA) because they have invested in CSC.

The new board is chaired by Mrs Sylvia Khumalo Jiyane who is an old board member, deputised by Mr Nemrod Chiminya who is a seasoned technical person and also sits on the Tobacco Industry and Marketing Board.

Committee members are Mrs Emily Mumbengegwi, Mr Peter Nyoni, Mrs Cecilia Paradza, Mr Bekhithemba Nkomo, Dr Anxious Masuka, Mrs Rufaro Mazunze, Mr Khodholo Setaboli, Ministry of Agriculture representatives, Dr Unesu Ushewokunze Obatolu and Engineer Reston Muzamhindo.

@okazunga