Altfin creditors to recover only 25 percent of money owed

The liquidator of Altfin Life Assurance says creditors should expect to recover a quarter of their claims if he sells off the company’s building.

Altfin was liquidated in September last year, with Phibion Gwatidzo appointed its liquidator.

The company has total liabilities of $6.5 million against assets of $2.4 million.

“Assets are sitting in cash except for the $925 000 building. I have been given an offer but I have not been given the money. If I get the money for that building I will have $2.4 million to distribute among all the creditors. You should expect a pay out of 28 cents per dollar ($1),” Gwatidzo told creditors today.

He added that the negligence of company’s directors had contributed to the collapse of the company.

“Based on the unexplained actuarial deficit, it is apparent that there are policyholder funds that are unaccounted for. The magnitude of the actuarial deficit is sufficient to warrant an allegation that the directors acted recklessly or with gross negligence,” read the liquidator’s report.

Creditors are yet to vote before Master of High Court to litigate or not to.

“It should be noted however that litigation can be lengthy and unpredictable and it will be at the expense of the liquidation, further depleting the available funds with no guarantee of success,” said Gwatidzo in the report. – The Source

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