StarAfrica creditors push for liquidation ift.tt/1DMRZ2l Business Reporters StarAfrica creditors are pushing for its liquidation apparently frustrated over an “unsuccessful” scheme of arrangement, a source familiar with the development has said. Last year, the High Court sanctioned a scheme of arrangement between the company and its creditors entailing the disposal of Blue Star Logistics and star africa’s 33 percent stake in Tongaat Hullet Botswana. Creditors agreed to a six months moratorium from August from year to enable the group to raise funds to settle its obligations. The relief granted by lenders and creditors also covered loans with tenures of up to 36 months. However, starafrica is yet to find buyers for the two investments although the company said negotiations were underway for the disposal of the assets. A number of suitors, including the Botswana Stock Exchange-listed company Sefalana once made offers for starafrica’s stake in Tongaat, but the deals did not materialise. The source said starfrica creditors recently met and demanded liquidation of the company to raise funds to pay them what they are owed. “This scheme has resulted in what most of these creditors anticipated as far as disposal of assets is concerned. “There is a feeling that this has taken too long and therefore the creditors are now pushing for liquidation,” said the source. In statement last Friday, starafrica company secretary Mr Aldo Musemburi said the firm has resolved that the dividends from its investments be used to pay creditors pending disposal of its 33 percent stake in Tongaat and Blue Star Logistics. “The plant upgrade at Gold Star Sugars is in the final stages of commissioning, with quality products already being supplied to the market,” said Mr Musemburi. “Consequent, thereof, the board of directors of starafrica Corporation Limited resolved that dividends from the company’s investments be applied towards settling scheme members, pending their disposal of specified in the Scheme of Arrangement. “The company expects to receive dividends in December 2014 and is pleased to advise scheme members that the distribution plan is being complied to make payments to them on or before December 2014 in part settlement of debts owed to them by the company.” He said payments would be made pursuant to the scheme and will be made pro rata to amounts owed to creditors. At the company’s AGM last month, chief executive Dr Sam Mushiri said the group has achieved three of its four key deliverables aimed at restoring production at the Gold Star Sugar Harare plant. It is currently operating at 40 percent, targeting full capacity upon completion of the new plant commissioning. Dr Mushiri said the company expects full capacity production of 600 tonnes a day in the 2015 /16 period after completion of plant upgrade exercise.
Posted on: Sun, 02 Nov 2014 22:21:30 +0000
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