adminListed sugar producer StarAfrica Corporation Limited has agreed with debtors and creditors to dispose investments in an associate company and division as well as finalising an investment deal to rescue the company from collapse. The schemes of arrangement meetings were held after the High Court granted the sugar producer leave to convene meetings with debtors and creditors under the chairmanship of retired Justice George Smith.
“The directors of Star Africa Corporation Limited wish to advise that on 5 June 2013, Schemes of Arrangement meetings, under the Chairmanship of Justice George Leslie Smith (Retired) were held at Chapman Golf Club in accordance with the Court Order issued by the High Court sitting at Harare on 8th May 2013.
“All the Schemes were duly passed in terms of Section 191 of the Companies Act Chapter 24:03,” read part of the statement.
StarAfrica Corporation is believed to be in talks with South African sugar producer, Tongaat Hullet, for a possible loan facility to complete the deal.
The move is aimed at dealing with circumstances that triggered management and board changes at the diversified conglomerate.
The company has often issued a cautionary statement informing investors that it was in talks for a possible transaction that could impact on its share price.
There is speculation that a deal involving Tongaat Hullett announced at the firm’s Annual General Meeting (AGM) in September last year was now being negotiated.
At the last AGM, finance director Regis Mutyiri said raw sugar supplies had continued to affect operations at the company’s Harare plant and that plans were underway to negotiate a loan facility with Tongaat.
The transaction involved the extension of a $6,8 million revolving sugar facility to enable the company restart operations at the plant. — New Ziana
Online Reporter
derick.khumalo