TETRAD Investment Bank (TIB) is scouting for investors to take over the bank after creditors and depositors rescued the institution from liquidation.
BY TARISAI MANDIZHA
Early this month, creditors and depositors agreed to a debt-for-equity swap plus partial payment at a scheme meeting in Harare and Bulawayo.
In a notice yesterday, the Deposit Protection Corporation (DPC) invited interested potential investors to submit their expression of interest to acquire in whole or in part equity interest in Tetrad.
“The members and creditors of Tetrad Investment Bank, under provisional judicial management, recently voted for a scheme of arrangement involving a partial cash payment and conversion of debt to equity. This results in a clean balance sheet with the bank’s equity approximating the minimum capital threshold of $25 million,” DPC said.
The bank has been under provisional judicial management since July 2015. In 2014, the bank was ordered to stop accepting deposits after it failed to pay for deposits.
DPC said interested parties are required to register their interest with Tetrad transaction adviser, BDO Tax and Advisory Services Private Limited on or before May 12.
TIB owed depositors and creditors a combined $67 372 926.
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In a notice last month, scheme chairperson Andrew Mugandiwa said TIB was not attractive to investors under its current state and that several capitalisation initiatives taken by the directors and shareholders have failed to yield desired results.
“The creditors and depositors of the bank have suffered for too long and it would be important to bring closure to the issue. Furthermore as each day passes with the bank in its current state, further losses in value are incurred,” he said then.
