LISTED Turnall Holdings Limited is yet to secure an investor to give a lifeline to its operations, with revelations the firm’s debt restructuring exercise will be completed by the end of August.
BY FIDELITY MHLANGA
The company announced in April that it was engaged in discussions relating to the restructuring of its balance sheet.
NewsDay understands the company was restructuring its balance sheet by engaging its creditors for a possible debt-to-equity swap to ward off creditors jostling for its assets.
The company’s acting finance director, Samson Mavende on Monday, told NewsDay the debt restructuring exercise was still work in progress.
“The debt restructuring is work in progress. We haven’t finalised,” he said.
“It will not happen in this quarter. There are few things that we need to tie up. We haven’t found any investor.”
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Company chairperson, Rita Lukukuma confirmed the finalisation of the debt restructuring exercise would be done by the end of next month.
“It’s still work in progress. There are issues to be finalised. I am not in a position to disclose further details at the moment. I think by end of August we should finalise the deal,” she said.
“Unfortunately, we cannot announce any specifics at the moment because there are sensitivities on the scheme of arrangement.”
As part of debt restructuring exercise, the company wrote to its creditors proposing that they receive shares in full and final settlement of the outstanding balance with the number of shares basing on the conversion price determined by the intrinsic value of the company.
Turnall also gave creditors an option to either receive and hold shares or alternatively match the receipt of shares with the immediate disposal of the same shares to a third party.
The manufacturing firm’s current liabilities stood at $18 million as of December 2016 against total assets of $35 million in 2015.
In May this year, Mavende said the company has engaged the Zimbabwe Revenue Authority (Zimra) to pay its $16 million tax obligations over a period of eight years.
“Zimra has allowed us to pay the debt over eight years. We owe them $16 million. At the moment, we are talking to some banks and the banks are of the view that we can resolve it without going to Zamco (Zimbabwe Asset Management Company),” he said.
