THE takeover of
Horizon is made up of a Russian investor - Sergey Pokusaev, the
During a scheme of arrangement meeting at a local hotel attended by hundreds of angry creditors and depositors as well as a consultant representing the potential investor, management pleaded for the deferment of payment until
The affirmative vote means that any action, application or executions against the bank will be put on hold.
The bank, which has over 3,000 depositors, had been issued with 65 summons, with 17 of those seen as presenting a threat to its assets.
Creditors were informed that the bank would be placed under curatorship or liquidation should they fail to vote in favour of the moratorium, hindering the potential investment.
"The ultimate objective of passing this scheme is to provide relief to the bank and it will enable us to go forward and complete the investment transaction which will return the bank to normal," said Tetrad's head of legal and advisory affair,
He said the vote would also lead to the immediate stabilisation of the bank and protect it from legal risk.
Bhudama Chikamhi, the managing consultant of BCA Consultancy Services, representing the potential investors, told the meeting that the prospective shareholder was committed to the transaction once regulatory approvals were completed.
"Unfortunately because of the sensitivities involved in the transaction, we are not in a position to give too much detail," he said.
Chikamhi also read out an email from the investor at the behest of the meeting's chairperson, former High Court judge, Justice
"Our consortium brings together foreign and local players. It is our target that we capitalise the bank to the tune of
Tetrad group chief executive
"The transaction came out to be far more complex than we had actually anticipated. Even the information that is shared with us is extremely limited," he said.
Some agitated creditors wanted assurance on whether they would get their money by
"The whole idea is that we buy enough time so that we can conclude the transaction. From the information that we have seen, there is money. It's not a perfect scenario, I understand the frustrations," said Mlambo.
Pressed to reveal how much creditors are owed, and the ownership structure under the new deal, Mlambo said creditors were owed
"The investor is putting in all the money," Mlambo said when asked how much the government's stake was worth.
Management said it had cut costs through voluntary retrenchment and cutting work hours. Employees had also gone for months without payment, they said.
Mlambo said the bank's problems started when the central bank increased capital requirements to
"We do receive the cash but that cash we lend it out to borrowers. So the bulk of the cash would go towards loans. We did not utilise the cash to acquire properties," he said, adding that some of the money was used as working capital.
The group finance director Thomas Chimanda said the bank was solvent as it had assets worth
"So, on a net asset position basis, we are solvent," he said.
He said the bank was owed
The group, which established in 1995, comprises a merchant bank, TIB; an asset management Company,
Most Popular Stories
- Toxic Algae Threatens Florida Fishing, Tourism
- Hispanic Groups Lead Voter Registration Drive
- Fed Signals It Will Keep Key Rate at Record Low
- Eva Mendes Gives Birth to a Baby Girl
- Plus-Size iPhones Live Up to The Hype
- FedEx Adding 50,000 Holiday Jobs
- Stocks Rise Before Fed Statement
- Occupy Wall Street Buys Up Student Debt
- Cool Features on Today's New iOS 8
- Kohl's Hiring 67,000 for the Holidays