The High Court last week extended the current provisional order for Tetrad Investment Bank’s judicial management to August 6 while subsidiary TFS Management has been placed under provisional liquidation.
In a May 7 ruling, the court ruled that the current provisional order for judicial management be extended to August 6 at the same time that Tetrad shareholders filed an application at the Bulawayo High Court seeking an order for the removal of Winsley Militala as the provisional judicial manager.
The directors of the bank insist that Militala produced a flawed and inaccurate report which was designed to mislead creditors and shareholders. The bank also says Militala continues to refuse to engage Horizon investors.
“This is despite numerous requests from Creditors, Tetrad Holdings Board and Shareholders to do so. This impasse is to the detriment of all Creditors and Shareholders. The power to push the PJM lies with the Creditors,” said the bank in an update to customers.
According to the Masters’ report, presented at the court hearing in Harare 175 creditors with claims amounting to $39,1 million voted in favour of placing the company into final judicial management, 40 creditors with claims amounting to $9,7 million voted in favour of liquidation.
In Bulawayo 22 Creditors whose claims amount to about $91 000 refused to vote insisting that they wanted the Provisional Judicial Manager to provide more information in his report and should engage the potential investor.
Tetrad says there are letters from the Russian investors requesting a meeting with Militala who has, however, refused to commit himself.
An agreement between Horizon and Government over the intentions of the former has already been signed. The bank also raises concern over the amount that has already been paid as judicial management fees.
“The PJM issued an invoice for 6 week period of $147 000 before VAT. To date he has paid himself over $50 000 over and above costs of meetings. If we extrapolate his fees over a period of three years which is normal for any liquidation of this size, creditors would to be aware that they will part with fees in excess of $5 million including VAT.”
Tetrad also says discussions with the Panama investors AAY continue.
“They are asking for 90 days in order to carry out their due diligence. Hopefully, that will be possible within the extension of the current provisional order. A lot depends on the co-operation of the PJM.”
Meanwhile TFS Management has been placed under provisional liquidation with Aurifin Capital’s Knowledge Hofisi appointed as liquidator on May 7. TFS Management’s exposure is believed to be over $10 million but only fixed income is at the bank while the bulk is in investments. – Wires.