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PG Industries last Friday postponed its scheme meeting and extraordinary general meeting to align with the Zimbabwe Stock Exchange listing requirements.
The group was supposed to have a Scheme of Arrangement with its lenders, creditors and debenture holders as well as pursue a US$3,5 million rights offer.
On Friday, PG highlighted that the financial results are being collated.
It added there was need to include theme in the scheme circular to creditors and shareholders.
A date of 14 March 2014 was requested.
It was subsequently granted to Old Mutual Limited, the agitated shareholder.
On the proposed creditors’ scheme, only one creditor, Sherwood International’s Zimbabwe unit Super Group Trading is secured.
PG owes US$1,4 million to Sherwood which is secured by a guarantee from a local financial institution.
Under the proposal, Sherwood will continue to supply the group.
The remaining creditors, owed about US$16,3 million will be offered either PG ordinary shares in lieu of amounts owed at a price of US$0,001 by way of private placement or a deferred payment plan to settle the amounts over a 36-month period plan.
The scheme will also seek to have debenture holders convert their debentures to PG ordinary shares.
The debentures are worth US$6,72 million.
Meanwhile at the beginning of the year PG Industries began extensive operational restructure which among other things resulted in the merger of PG Building Supplies and PG Timbers. The company, which is currently suspended from trading on the ZSE, is seeking to address the financial constraints of the company by right-sizing the business to its revenue generating capacity as well as to restructure the balance sheet. — FinX..
Online Reporter