admin
Lovemore Zigara, Midlands Correspondent
A SOUTH African packaging company Nampak has made inquiries about taking over the country’s sole flint glass manufacturer, Zimbabwe Glass Industries (Zimglass).
The Johannesburg Stock Exchange listed company specialises in glass, plastics, paper and tin packaging.
Zimglass, a subsidiary of the Industrial Development Corporation (IDC), has been insolvent since 2010 and voluntarily applied for judicial management in 2014 citing lack of capital, debt overhang and mismanagement.
Its assets stood at $19,2 million as at December 2014 while its liabilities were at $31,2 million.
Mr Winsley Militala, the judicial manager of the Gweru-based glass maker, told Business Chronicle that Nampak had requested Zimglass’ balance and financial statement, which he said he has availed to the South African-based firm.
Mr Militala said he is now awaiting the company to make a formal expression of interest.
“Nampak is the only company which has so made inquiries on Zimglass and when they visited they requested to look into the company’s financial statements and that of its assets and creditors. So it’s after that that they will formally make an expression of interest so at the moment the ball is still in their court,” he said.
The judicial manager said he would go ahead with the liquidation of the glass manufacturer adding that the firm which will take over Zimglass “will start on a new slate.”
Mr Militala said preference of selling off the company’s assets would be given to bidders with “technical and financial capacity” to resume operations at the glassmaker.
In September last year, a special creditors’ meeting convened by Mr Winsley Militala voted for liquidation after the glassmaker failed to find an investor to inject fresh capital.
A physical verification exercise of the company’s assets has been conducted to pave way for liquidation.
Zimglass was established in 1963 as a subsidiary of Consol Glass and became an IDC subsidiary in 1984.
The firm manufactures glass packaging material for alcoholic and sparkling beverages, food, liquor and pharmaceuticalsegments.
It’s major domestic customers include Delta Beverages, African Distillers, Mutare Bottling Company, Straitia Investments, Olivine Industries, Datlabs and E. Snell and Company.
Online Reporter