TEXTILE company, Merlin, expects to finalise arrangements on the $5 million funding facility from government in the next “few” weeks, an official has said.
BY MTHANDAZO NYONI
In his progress update report presented at the creditors’ meeting held in Bulawayo recently, Merlin judicial manager, Cecil Madondo, disclosed that he had submitted an application for funding assistance to the government through the Industry, Commerce and Enterprise Development ministry.
The fund would cover the company’s medium to short-term plan needs while waiting for an investor to pour in $30 million.
Madondo told NewsDay in emailed responses that the deal was expected to be concluded in the next few weeks.
“The government through the Ministry of Industry, Commerce and Enterprise Development has been very helpful in pushing for our loan application to be processed.
We have made significant progress working with Zimbabwe Asset Management Corporation who are handling the portfolio and we are currently engaged in discussion on the modalities of the funding facility,” he said.
“Based on the discussions, we believe an arrangement will be finalised in the next few weeks.
We will keep you informed of further developments in that regard,” Madondo said.
Madondo revealed that production at Merlin which resumed towards the end of March 2018 was currently going on well and to date a sizeable number of deliveries have been made to customers for products from the spinning department which is up and running.
“There is also progress in repair work in the other departments namely, weaving, dyeing and making departments that will enable us to start producing the main product lines which include bath towels, face cloths, kitchen towels, bed sheets and morning gowns.”
“However, progress has been hampered by the limited working capital required to complete the repairs and maintenance for the factory to operate all departments, but we are anticipating that once the facility from the government is availed, the factory will be firing from all departments.”
Madondo said there have also been some hindrances in sourcing spare parts, some of which are imported, and requires foreign currency.