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Tinashe Makichi Business Reporter
PHOENIX Consolidated Industries is considering delisting from the Zimbabwe Stock Exchange as part of the company’s strategy to sort out its financial problems away from public scrutiny, provisional judicial manager Mr Reggie Saruchera said. Mr Saruchera said this while presenting a progress report to creditors at the High Court yesterday. Phoenix Industries was suspended from trading on the Zimbabwe stock exchange in October last year after the company had gone into liquidation.
He said as part of the company’s resolutions for 2014, they are considering delisting as a turnaround strategy and would then consider listing again once operations are back to full capacity.
“We want to get the chance to dispose of some of our unproductive infrastructure as we hope to boost revenue for the group,” Mr Saruchera said.
The company, which is battling to remain afloat, has a high levels of borrowings and debt of about US$5 million.
Mr Saruchera said there was scope in saving Phoenix as it had potential to generate income to repay creditors once it had been recapitalised.
“A lot of investors have shown interest but what is only left is the authority to get the needed investor,” Mr Saruchera said.
He said the company was now supposed to be put under final judicial management.
The High Court is going to announce the person to take over as the final judicial manager once the voting process by the creditors has been completed.
Apex Pension Fund is Phoenix’s major shareholder with a 46 percent stake. Phoenix Consolidated is a broad-based group of manufacturing industries.
Phoenix manufactures plastics and allied products as well as steel and allied products in Bulawayo and Harare. Its subsidiaries are William Smith and Gourock, Phoenix Brushware, Scandia Wire, JW Searcy, Precision Grinders and McMeekan.
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