HomeBusinessDeposit Protection Corporation moves on Royal Bank

Deposit Protection Corporation moves on Royal Bank

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THE Deposit Protection Corporation (DPC) has started preparing to set up the first liquidation and distribution account of Royal Bank as part of efforts to refund depositors whose funds are trapped in the financial institution.

by TARISAI MANDIZHA

The bank was placed under provisional liquidation in February last year when it surrendered its operating licence to the Reserve Bank after it failed to secure new investment.

Royal Bank liquidator John Chikura, who is also the chief executive of the DPC, said the first liquidation and distribution account would determine how much money depositors would get.

Royal Bank property was auctioned last month as the DPC moved to recover creditors’ funds.

“We can confirm the auction of immovable properties went ahead as variously advertised in the Press. A detailed account of the auction results will be provided in the liquidator’s second report which will be presented in the second creditors’ meeting,” Chikura said.

“We can’t tell how much was realised from the auction, but all we can say is that there was a high turn-up and everything was sold.”

He said the second creditors’ meeting was set to be held mid-March 2015 and a detailed account of the auction results would be provided in the liquidator’s second report.

“As you might be aware, Royal Bank is now in final liquidation and the first creditors’ meeting was held on 28 January 2015 whereat the liquidator’s first interim report was presented and circulated to all creditors and the Press. As per usual practice, the main purpose of the first creditors’ meeting was to allow all creditors to prove their claims before the Master of High Court,” the DPC boss said
“The liquidator expects to hold a second creditors’ meeting for Royal Bank by mid-March 2015 at which a detailed report highlighting, among other issues, the gross receipts realised on disposal of movable and immovable assets, liquidation expenses and the liquidation dividend to be paid to unsecured creditors will be presented and circulated to all creditors.”

Royal Bank was established in 1997 and placed under curatorship in 2004 due to liquidity challenges, poor lending practices and corporate governance deficiencies.
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Its assets were later transferred to Zimbabwe Allied Banking Group in 2005. After a myriad of litigations, the parties eventually agreed on an out-of-court settlement and the bank was re-registered as a commercial bank in 2010.

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