admin
The disposal of the assets of Steelnet, which has three divisions – Tube & Pipe Industries, BMA Fasteners and Hastt Zimbabwe – follows failure by the company’s shareholders to inject new capital into the troubled firm.
Steelnet opted for voluntary judicial management two years ago as the company’s financials were in the red, struggling to repay debts which at the time amounted to over US$4 million.
The firm’s liquidator, Mr Christopher Maswi of Fairvalue Management Consultancy, said the company’s divisions were being sold separately.
“Tenders are hereby invited from interested parties to purchase the operating assets of three specified divisions. The assets include plant and equipment and land and buildings,” he said.
“Each division assets are sold as a whole unit.”
Once a viable listed firm, Steelnet was placed under final liquidation by the High Court on May 8.
The diversified firm through its divisions used to produce engineering equipment, spares of agricultural transport and manufacturing industries, a range of bolts and nuts, wire nails among others.
Some of the products were exported to regional countries including Angola, Botswana, Mozambique and South Africa.
At the height of its troubles, Steelnet reportedly had some of its assets attached over a US$440 000 debt it owed Genesis Investment Bank.
The company’s woes reportedly worsened at the height of the country’s economic downturn between 2007 and 2008.
Unavailability of cheap finding and high interest rates at the adoption of multi-currencies in 2009 did not make the situation any better for the company which attempted to raise US$6 million for recapitalisation through a rights offer but failed after major shareholders did not participate.
The deadline for bids to buy the divisions is June 10. — New Ziana.
Online Reporter