The High Court has ordered the sale of CAPS Holdings head office in Harare, after it emerged a local bank is pursuing the delisted pharmaceutical company in a bid to recover a debt.
A notice of sale carried in local dailies on Monday indicated Ebenezer Properties, a local estate agent, will later this month auction a three-storey building, three factory plants and a workshop owned by the pharmaceutical company to recover funds owed to CBZ.
The auction is set for June 22. CAPS, which delisted from the Zimbabwe Stock Exchange last July, has been struggling to stay afloat.
A notice by the auctioneer said: “Duly instructed by the Sheriff of the High Court of Zimbabwe, we will be offering the following immovable properties for sale by public auction to be held at Raylton Sports Club, Harare . . . CBZ Bank vs CAPS Holdings Limited also known as 2 Manchester Road.”
The notice comes at a time when banks are becoming conservative in their lending on the back of the high level of non-performing loans. The loan-to-deposit ratio currently stands at 79,1% making it one of the highest in the region.
According to Imara Securities, individuals and companies continue to have a high appetite for borrowing despite the high loan default rate.
In April this year, CAPS’ property worth millions of dollars was attached by the Deputy Sheriff following the company’s failure to settle a CBZ debt amounting to $4 399 317, 72.
Chief Justice Godfrey Chidyausiku issued a writ of execution dated March 12, against CAPS Holdings’ movable and immovable property under case number HC 12384/11.
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The property company is also scheduled to auction property belonging to businessman and former Jaggers Wholesalers proprietor Cecil Mderede.
Other properties being auctioned to recover funds for financial institutions — Premier Banking Corporation, NMB, MBCA, ZB Bank, ZABG and POSB — include residential stands and farms.
