Categories: Stories

Border Timbers applies for judicial management

Agro-industrial concern Border Timbers has applied to be placed under provisional judicial management, seeking cover from creditor pressure, as yet another big firm faces viability problems and struggles to keep thousands in jobs.

Border employs 1 700 workers.

The company said the move was triggered by one of its major creditors, which it did not name, who took the company to court in a bit to recover funds owed.

Last year, the company sold its loss-making subsidiary Border Timbers International, writing off $4.5 million in the process, as it moved to restructure in a bid to stay afloat.

The company also failed to pay its annual fees to Zimbabwe Stock Exchange amounting to $13 000 in the prior year.

“Over the last 12 months, the company has undergone a comprehensive restructuring exercise, the benefits of which are now being seen in lower production costs,” Border said in a statement.

“The Board believes that the company now needs to address its financing arrangements with regards to both cost and tenor and that will be best achieved under protection of Judicial Management.”

The company said it remains viable, with positive cashflows only mitigated by high finance costs, and believes going under judicial management will help protect the 1 700 workers it currently employs.

Last year, major agribusiness Cotton Company also applied to go under judicial management as it grappled with a $50 million debt. Cottco, however, withdrew its application after reaching a deal with lenders.- The Source

(393 VIEWS)

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

Will Mnangagwa go against the trend in the region?

Plans by the ruling Zimbabwe African National Union-Patriotic Front to push President Emmerson Mnangagwa to…

October 22, 2024

The Zimbabwe government and not saboteurs sabotaging ZiG

The Zimbabwe government’s insatiable demand for money to satisfy its own needs, which has exceeded…

October 20, 2024

The Zimbabwe Gold will regain its value if the government does this…

Economist Eddie Cross says the Zimbabwe Gold (ZiG) will regain its value if the government…

October 16, 2024

Is Harare the least democratic province in Zimbabwe?

Zimbabwe’s capital, Harare, which is a metropolitan province, is the least democratic province in the…

October 11, 2024

Zimbabweans against extension of presidential term in office

Nearly 80% of Zimbabweans are against the extension of the president’s term in office, according…

October 11, 2024

Zimbabwe government biggest loser when there is a discrepancy in the exchange rate

The government is the biggest loser when there is a discrepancy between the official exchange…

October 10, 2024