Chronicle Editor
Oliver Kazunga, Senior Business Reporter
CFI HOLDINGS Limited says its subsidiary, Victoria Foods (Private) Limited, is awaiting court approval to exit judicial management after the company successfully restructured and settled legacy disputes.
Last month, Victoria Foods judicial manager Mr Reggie Saruchera announced that the firm had been successfully restructured, reorganised and settled legacy disputes with its creditors.
Victoria Foods, together with its sister company, Agrifoods, a stockfeed manufacturing firm, were in 2016 placed under provisional judicial management before being subsequently placed under judicial management to allow for debt restructuring, re-organisation and recapitalisation.
At that time the two business units required US$12 million for recapitalisation.
CFI Holdings company secretary Mr Panganayi Hare said Victoria Foods’ legacy foreign and local creditor debts were fully repaid during the period the third quarter ended 30 June 2021.
“Having resolved the legacy debt issues, Victoria Foods is expected to shortly exit judicial management once the courts sanction same,” he said in a trading update for the period.
It is hoped that once the judicial management exit order is granted by the High Court, the Victoria Foods board and management would assume control over the firm.
In addition, the removal of Victoria Foods from judicial management is set to bolster CFI’s contribution to national food security and the group’s turnaround efforts.
CFI is a leading agricultural-based industrial holding company primarily involved in manufacturing and selling fresh produce and manufacturing stock feed as well as property management and letting.
During the period, sales volumes in the key revenue drivers improved by 169 percent over the previous period.
“The growth was attributable to an increase in aggregate demand following the relatively good 2020/2021 rain season, which boosted both summer crops and the tobacco season.
“Also contributing to the growth during the period, though modest, was the resurgence in construction activities,” said Mr Hare.
The group also benefited from growing demand for Agrifoods’ stock-feeds after it exited judicial management in prior year as well as opening of additional retail stores during the period.
Farm & City re-opened its Chipangayi branch in May and added another branch in Masvingo at the beginning of June.
“At Glenara estates, both maize and table potatoes harvested increased by 42 percent and 85 percent respectively,” he said.
On the outlook, Mr Hare said while the Covid-19-pandemic is expected to remain ongoing, the group expects an improved business outturn overall for financial year 2021 due to the implementation of more flexible lockdown measures compared to prior year.
“The management of consistent raw material supplies for Agrifoods and Victoria Foods will remain an on-going priority as the group seeks to play its part in underpinning food security in the country,” said Mr Hare.
“Priority will also be given to the development of low-cost housing delivery in Harare South in support of Government’s Vision 2030 housing plans.
“The scourge of land barons will need resolution to make way for progressive and orderly infrastructure deployment and service delivery to the various settlements,” he said. — @okazunga
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