admin
Tetrad Investment Bank has extended its creditor’s scheme of arrangement to January next year effectively putting on hold the payment of its creditors as the re-capitalisation process continues to stall.
In May, Tetrad shareholders approved the takeover of the bank by Horizon, which wants to inject $200 million fresh capital into the struggling bank – one of the seven financial institutions being monitored by the central bank under the Troubled and Insolvent Bank Policy.
But the takeover was stalled by regulatory approvals in August and the bank took contingency measures to prevent its restless creditors from making further claims to recover what is owed to them before finalisation of the re-capitalisation process.
The bank applied for a High Court Order to convene a scheme meeting with its creditors and depositors in terms of section 191 of the companies act. In a statement, chairperson of the scheme meeting Justice George Smith said the extension of the scheme had been agreed on with the bank’s creditors.
“After consultations with the creditors of the bank, in accordance with paragraph 2,2 of the provision of the order of the high court dated September 24 2014 (Case no. 1532/14), I hereby declare that the Scheme is extended from October 31 2014 until 31 January 2015,”he said.
Tetrad, which has over 3 000 depositors, had been issued with 65 summons, with 17 of those seen as presenting a threat to its assets.
Debtors owe Tetrad $14 million in loans, $10 million of which are insider and related-party loans, with $5,4 million having been recovered so far in the form of properties.
Tetrad is a subsidiary of Tetrad Holdings established in 1995 and comprises an asset management company, TFS Management Company; a micro finance company, Multiridge Finance; an insurance company, THI Insurance and a property development and management company, Tetrad Properties.- BH24.
Online Reporter