AfrAsia Bank assets go under the hammer

The Deposit Protection Corporation has put assets of the collapsed AfrAsia Bank Zimbabwe under auction to recover creditors money but said cash shortages were affecting the liquidation process.

Liquidator Reggie Saruchera of Grant and Thornton today said a second dividend was paid to preferent creditors in November last year but did not mention the amount. This follows on from the $1.35 million paid out in April last year.

“The third interim dividend is likely to be paid out in the first half of 2017 to concurrent creditors after all preferent creditors have been paid. The dividend will be distributed on a pro-rata basis depending on the rate of recovery and disposal of assets,” said Saruchera in an update to creditors.

Auctioneer Hammer and Tongues yesterday said it will be auctioning commercial property inclusive of a double storey building and a service station located in Msasa, Harare on behalf of the DPC.

The central bank in February 2015 cancelled the bank’s operating licence after determining that the financial institution was no longer in a sound financial condition.

This was after its shareholder AfrAsia Zimbabwe Holdings Limited voluntarily surrendered the banking licence and was liquidated in the following month.

AfrAsia had 12 branches countrywide as at the time of its closure.-The Source

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