Categories: Stories

Agrifoods to reopen in May

Agrifoods is expected to resume operations in May after securing grain deal while awaiting capital injection of $5 million from its shareholders, creditors were told recently.

Agrifoods, Crest Poultry Group (CPG) and Manicaland Farmers are CFI subsidiaries which were placed under provisional judicial management on August 3 last year, with Reggie Saruchera of Grant Thornton as judicial manager.

The units were shut down last year after persistent losses over the past five years.

A representative of the judicial manager, Bulisa Mbano told creditors at High Court that shareholders were finalising the rights issue offer to inject capital.

“To date we are in the process of restructuring … The shareholders of Crest Poultry Group is CFI Holdings and are going through their internal processes to do a rights issue so that we can get capital,” said Mbano.

“We are also in the process of finalising a supplier agreement with a company that want to give us grain. The agreement is in final stages and by 15 May we should see Agrifoods in Harare and Bulawayo operating. This is an interim measure as we await the big chunk of funds from the shareholders.”

Agrifoods revenue is expected to reach $27 million, with gross profit of $4.9 million in the first year of judicial management.

Agrifoods and Agrimix owe creditors $10 million.- The Source

(100 VIEWS)

This post was last modified on March 15, 2017 7:25 am

Charles Rukuni

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

Recent Posts

Reserve Bank of Zimbabwe expects more foreign currency sellers to join the interbank market

The gazetting into law of the payment of quarterly taxes on a 50-50 basis in…

December 4, 2024

Zimbabwe 2025 citizens’ budget

Zimbabwe has today unveiled a ZiG276.4 billion budget for 2025 during which it expects the…

November 28, 2024

To go or not to go- Mnangagwa in a quandary

Zimbabwe President Emmerson Mnangagwa has repeatedly stated that he is not going to contest a…

November 25, 2024

ZiG loses steam, falls against US dollar for five consecutive days

The Zimbabwe Gold fell against the United States dollar for five consecutive days from Monday…

November 22, 2024

Indian think tank says Starlink is a wolf in sheep’s clothing

An Indian think tank has described Starlink, a satellite internet service provider which recently entered…

November 18, 2024

ZiG firms against US dollar for 10 days running but people still do not have confidence in the currency

Zimbabwe’s new currency, the Zimbabwe Gold (ZiG), firmed against the United States dollars for 10…

November 16, 2024