adminGolden Sibanda Harare Bureau
THE government has been hailed for averting the collapse of Cairns Holdings after it advanced $1 million to the company under the Distressed Industries and Marginalised Areas Fund (Dimaf).
In this regard, the Office of the President and Cabinet is expected to visit the company to see the positive impact the fund had on the firm.
The government, in partnership with Old Mutual came up with the facility in 2010 to help the distressed firms.
“On Monday the Office of the President and Cabinet will visit the company to see how the money disbursed under the Distress Industries and Marginalised Areas fund has been used,” Cairns judicial manager Reggie Saruchera said yesterday.
Since 2011, 48 companies, half of them from Bulawayo, have received loans worth $28 million from fund.
Saruchera said the $1 million obtained under the Dimaf sustained the company’s operations and saved about 700 jobs. The funds were used for recapitalising the business, thus enabling Cairns to increase production to 40 percent capacity from about 10 percent at the height of its crisis, said Saruchera.
Crucially, the financial support has taken the company to a point where the High Court has endorsed its reconstruction scheme which will see Takura Capital, the new investor injecting $33 million. The transaction is expected to be completed by September this year.
Online Reporter