DIVERSIFIED conglomerate starafricacorporation Limited will settle scheme member’s debts on a pro-rata basis before the end of the year, the company has said.
In a statement at the weekend, the company said it was now in the final phase of the commissioning of Goldstar Sugars Harare, with quality product already being supplied to the market.
“Consequent thereof, the board of directors of Star Africa Corporation Limited resolved that dividends from the company’s investments be applied towards settling scheme members, pending their disposal as specified in the Scheme arrangement,” the company said.
The company expects to receive dividends in December 2014 and that a distribution plan will be compiled to make payments possible.
“The payments are being made in pursuant to the scheme and will be made pro rata to amounts owed to scheme members,” the company said.
The company doubled its output last month to 600 tonnes per day due to the plant upgrade at Gold Star Sugars Harare refinery plant. The plant has been producing 300 tonnes per day.
The plant upgrade began last year and was estimated to cost $7 million.
For the quarter ending September 30, the company has been focusing on four deliverables — plant upgrade for Harare refinery, supply arrangement, disposal of non core asset and the scheme of arrangement.
The scheme of arrangement was concluded in the six months to December 2013 and will be settled over a three-year period.
The scheme entailed restructuring of both the company’s debt and balance sheet, the disposal of Bluestar Logistics and the company’s 33,3% shareholding in Tongaat Hulett Botswana Proprietary Limited to fund the requisite part settlements to lenders and creditors.