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Martin Kadzere Senior Business Reporter
QV Pharmacies, a subsidiary of CAPS Holdings was on Wednesday last week placed under provisional judicial management after one its creditors successfully applied for its reconstruction.
The High Court confirmed the appointment of Mr Winsley Militala of Petwin Executor and Trust Company as the provisional judicial manager of a once viable drug retailer.
“Yes I can confirm that I was appointed the provisional judicial manager after one of the creditors successfully applied for it,” Mr Militala, who is also provisional judicial manager of David Whitehead Textile said in an interview yesterday.”
Pulse Medical Care, a drug retailer made an application to have QV Pharmacies placed under judicial management. The company said QV was facing viability challenges due to corporate governance deficiencies and shareholder interference in the business. Businessman Mr Fred Mtandah is the majority shareholders in CAPS.
As such the company is failing to meet its obligations. Pulse Medical Care is owed US$95 000.
“Although respondent operates a lucrative business of trading in medicinal drugs, currently its liabilities exceed its assets and respondent has no means to pay the rental arrears. Legal proceedings and eviction are therefore imminent,” read part of the affidavit filed by Pulse.
Meanwhile, it is understood that there was resistance from the “officials” believed to be linked to the shareholders who resisted handing over control of the company to Petwin officials.
Mr Militala said he was out of town and was not aware of such development. “I am out of town but if that has truly happened, my office will advise me,” he said.
Efforts to get a comment from Mr Mtandah was unsuccessful. Last year, assets belonging to CAPS Pharmaceutical, the group’s flagship was auctioned for US$1,5 million, but the sale was reversed after Government expressed reservations on the nature of the business that was to be conducted by the winning bidder, media reports said.
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