CFX to wind-up operations

The High Court last week issued an order of provisional liquidation of CFX Bank Limited to wind-up its operations while appointing Reggie Saruchera as the provisional liquidator.

The order follows the successful merger between CFX bank and Interfin banking corporation last year.

“Take notice that on Wednesday the March 2 2011 the High Court of Zimbabwe issued an order for provisional liquidation of CFX bank,” reads part of the government gazette issued last week.

“Any interested person who wishes to oppose the winding-up of the company shall file a notice of opposition with the registrar of the High Court on or before may 18 2011 and shall serve a copy of the notice on the applicant”.

The move to wind-up CFX operations would put to rest claims by former ENG director, Gilbert Muponda that the amalgamation was unprocedural.

Muponda has been contesting CFX Financial Services’ takeover of Century Bank, which the businessman claims belonged to his now defunct ENG Capital.

Interfin took over CFX in July last year after retaining about 52% of CFX’s issued share capital in a grossly undersubscribed rights issue as the underwriter.

Interfin took over a controlling stake in CFX after the latter’s shareholders undersubscribed the group’s $10 million rights offer.

CFX enlisted Interfin to underwrite its rights offer as it raced against time to meet the Reserve Bank of Zimbabwe’s phased minimum capital requirements for its banking arm.

The deal was also approved by the Reserve Bank of Zimbabwe and the ministry of finance.

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