Zimglass liquidation finalised
THE final liquidation of the country’s sole flint glass manufacturer, Zimbabwe Glass Industries (Zimglass) has been completed after efforts to revamp the company failed.
The move paves way for the disposal of the company’s assets, management said.
Zimglass, a subsidiary of the Industrial Development Corporation (IDC), has been insolvent since 2010 and voluntarily applied for judicial management in 2014 citing lack of capital, debt overhang and mismanagement.
Its total assets value stood at $19,2 million as at December 2014 while liabilities clocked $31,2 million.
The company judicial manager Mr Winsley Militala told Business Chronicle that a suitor for the company was proving difficult to come by.
“It is true that the company went through the final liquidation, which means that I can go ahead and sell the assets. However, there have not been any suitors who have come to make a solid bid for the company,” he said.
Towards the final liquidation of Zimglass last year, Johannesburg Stock Exchange listed Nampak, which specializes in glass, plastics, paper and tin packaging had made inquiries seeking to take over the Gweru-based glassmaker. Nampak requested Zimglass’ balance and financial statements, which were availed to the South African based firm.
However, since that expression of interest Mr Militala said there has been no movement with regards to the earlier inquiries. The latest developments comes as Industry and Commerce Minister Dr Mike Bimha recently announced the restructuring of IDC, which will see some entities falling under the corporation armpit being disposed to indigenous players.
The IDC is a Government owned entity with a mandate to stimulate industrial development in the country.
Most IDC subsidiaries are facing viability challenges due to undercapitalisation and antiquated technology, among other factors. Zimglass was established in 1963 as a subsidiary of Consol Glass and became an IDC subsidiary in 1984. The manufactures glass packaging material for alcoholic and sparkling beverages, food, liquor and pharmaceutical segments’ major domestic customers include Delta Beverages, African Distillers, Mutare Bottling Company, Straitia Investments, Olivine Industries, Datlabs and E. Snell and Company.