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Oliver Kazunga Acting Business Editor
TROUBLED insurance broking firm, Navistar Insurance Brokers, says it is close to raising $400,000 needed to pay off creditors before the regulator can consider lifting its suspension to resume operations. The company, which was placed under judicial management in 2014, had its operating licence suspended when its three executives were charged with fraud and criminal abuse of office for allegedly defrauding Air Zimbabwe of $8 million in 2009 through inflating aviation insurance premiums.
This crippled Navistar’s operations, resulting in the directors, whose case is still before the courts, applying for the company to be placed under judicial management, which was granted in May.
According to an online publication, the company’s judicial manager Wesley Sibanda said the firm would need to pay off all its creditors whom he said were owed close to $400,000 and to change the company’s management.
“So far we’ve raised $389,000 from debtors.
“We’ve also got some money locked up elsewhere and we’re negotiating to have it unlocked,” he was quoted as saying.
“We anticipate to finish paying creditors by end of March this year.”
Sibanda said after paying off the creditors, he would approach the Insurance and Pension Commission which still required the company to be handed over “to people who are acceptable,” for negotiations.
He said he would find a way to address the requirement since shareholders were willing “to let go of the company” as long as they were paid for their holdings.
The judicial manager last year told creditors during a meeting at the High Court that the company had potential to be turned around once suspension was lifted and the firm was properly managed.
Last year, the company’s assets were valued at $1.5 million while creditors were owed $1.3 million.
Online Reporter