The Sunday News
Munyaradzi Musiiwa, Midlands Correspondent
ZIMBABWE Glass Industries Limited (Zimglass)’s new investor is set to settle all debts accrued by the Gweru-based company including outstanding workers’ salaries.
Sunday Business has it on good authority that the new suitor is a local investor although judicial managers, Petwin Executor and Trust Company are reluctant to reveal the name in fear of jeopardising the deal. Zimglass is the country’s sole producer of flint glass usually used for the bottling of soft drinks.
The company also used to produce amber glass and green bottle beer containers, pharmaceutical containers as well as wine bottles among other products. In an interview, Zimglass judicial manager, Mr Winsley Militala said the company is awaiting the conclusion of the deal which is likely to sail through soon before they could disclose the name of the new investor. Mr Militala said the money that the new investor will inject will also go towards the settling of the company debts.
“The potential buyer has requested anonymity until the transaction is concluded, kindly allow us to respect that until the transaction is over. The amount being offered will be enough to pay the secured creditor/s in full. Former workers, just like any other creditors, must lodge claims with the Master of the High Court, when it comes to payment, creditors are paid according to the governing laws,” he said.
Mr Militala had recently announced that Zimglass had found a new investor.
“Petwin Executor and Trust Company duly appointed liquidator of Zimbabwe Glass Industries Limited under master’s reference HC 5069/14 wish to inform shareholder(s), creditors and other stakeholders that we have received an offer for the assets of the company in their entirety as a unit. We are completing the process of verifying the integrity and source of funds to be utilised as purchase consideration in the transaction.
“We believe this exercise will allow for the successful winding-up of the affairs of Zimbabwe Glass Industries Limited (Zimglass) within the next 21 days. Accordingly, stakeholder(s) are being advised to exercise caution when dealing with the assets and business until further notice from the liquidator,” he said.
Following the announcement former employees have been up in arms with the judicial managers.
“We are working on behalf of former Zimglass workers as you understand that the company is now under liquidation but there are many irregularities happening within the liquidation process which is affecting us as workers. So we end up setting a committee which is trying to recover what we are owed by Zimglass, we had engaged a legal team to press for our payments,” said Zimglass workers committee secretary general Mr Moses Chikwadzi.
Zimglass initially closed in 2010 before resuming production of flint glass in 2012 and was set to produce about 12 600 tonnes of the product annually, this was after it underwent refurbishment of its blast furnace as well as replacing outmoded equipment.
The company received a US$7 million capital injection from the company’s parent company, Industrial Development Corporation of which US$5,5 million was supposed to go towards the completion of the refurbishment exercise, while US$1,2 million was meant for working capital. The company then ceased operations in 2014. The opening of Zimglass is also expected to reduce the country’s import bill as well as to generate foreign currency.
