adminPG Industries Zimbabwe says it plans to re-engage the Zimbabwe Stock Exchange (ZSE) to have its suspension lifted following the successful implementation of its Scheme of Arrangement.
The company was suspended from trading its shares on the local bourse in January last year (effective December 31, 2013) after breaching listing requirements (Section 1.7 of the Stock Exchange Listings Requirements) in respect of the implementation of the Scheme of Arrangement, which was aimed at restructuring its balance sheet.
The hardware retail group had been facing viability constraints rising from working capital constraints. But following the successful implementation of the Scheme of Arrangement, PG has said it will be re-engaging with the bourse “shortly”.
“With the sanction and registration of the Scheme, the company will shortly be re-engaging the ZSE with a view to lifting the suspension,” said PG in a notice.
In terms of the successfully implemented Scheme of Arrangement, PG said the Secured Lenders’ Scheme has been implemented in full and of the $5.3 million owed to secured lenders, $4,334,915 had been paid off through property sales or debt swap.
PG said the remaining balance of $965,082 was restructured to a three-year, 12 percent per annum, long term facility. The conversion process for the debentures and accrued interest has commenced. It is envisaged that shares will be distributed to debenture holders by the end of this month.
The company said in terms of fundraising and restructuring, it had raised $3.2 million, broken down as follows: $1.1 million as a three-year 12 percent per annum long-term loan; $1 million raised through a rights offer and $1.1 million raised through open market sale of properties.
The Scheme of Arrangement received sanction of the High Court on April 1, this year, and was registered on April 16. The first quarterly payments to concurrent creditors is set for October 16. — BH24
Online Reporter