PG debt repayment plan hits snag

HARARE - Hard-pressed PG Industries Zimbabwe (PG)’s plans to register its debtrepayment plan with the High Court have hit a snag after one of the creditors raised concern over the scheme.

The group owes various creditors nearly $12 million and sought to file a scheme of arrangement — a court-approved agreement between the company and its shareholders or creditors — with the court.

Kudakwashe Waniwa, PG’s secretary, said “the matter shall be set down and resolved favourably during the ?rst quarter of 2015.”

A scheme of arrangement may be used for rescheduling debt, and may have effect on mergers and amalgamations and might alter shareholder or creditor rights.

Under the scheme, balances owed as at September 2014, would be paid over a 30-month period, after an initial grace period of six months from the date of registration with the High Court.

“This scheme… will provide the much-needed cash flows relief to the group. The group’s secured creditor Sherwood International, agreed to the continuation of the deal based on current terms,” said the group’s acting chairman Francis Dzanya last year.

 

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