Harare firm Paramount Garments’ bid to acquire Archer Clothing Manufacturers was thrown into doubt after a meeting called for creditors to vote on the takeover failed to take place, an official of the company said on Friday.
The Bulawayo High Court last month set November 5 for creditors of the troubled firm to present further proof of claims and take a second vote on the offer from Paramount.
At the first vote in March this year, 44 out of the 45 creditors approved the Paramount bid, but the one dissenter’s objection has delayed the process, leading to the abortive Wednesday meeting.
“There was no vote taken, as the meeting never took off. It was pointed out to the court that the meeting was being held on the 14th day after notice had been given to creditors, when the court order approving the meeting said not less than 14 days, so the meeting had been called for one day earlier than was allowed by the Court Order,” said Paramount Garments managing director, Jeremy Youmans.
Despite the stalemate, Paramount in September resumed operations at the company, employed 205 workers and plans to add another 100 jobs by year-end. It has so far committed $2 million in reviving the company and intends to spend another $5 million in expanding its operations.
Youmans said a new meeting date, likely next year, would be announced soon.-The Source