AfrAsia to dispose assets

HARARE - Defunct AfrAsia Zimbabwe Holdings Limited (AZHL) — formerly Kingdom Financial Holdings Limited — is set to dispose assets worth nearly $40 million to compensate creditors, the group’s liquidator has said.

Grant Thornton managing director Reggie Saruchera told a creditors’ meeting last week Friday that he would follow up on AZHL non-performing loans (NPLs) to raise the difference and appease owed parties.

“AfrAsia owns property worth $40 million around the country and the bank owes creditors total credit worth $58 million. The remaining $18 million will be raised through follow up of non-performing loans from different companies and individuals,” he said, adding that an audit of the company’s assets was in progress.

Saruchera, however, noted that he was not going to sell the financial services’ properties on the auction market, but was going to engage the estate agents to sell the properties under the supervision of the Master of High Court.

“The bank has moved out of the buildings which it was renting to reduce the accumulation of rents and furniture has been put under auction,” he said.

The collapsed financial group had two subsidiaries, an asset management company — AfrAsia Capital Management and MicroKing, a microfinance unit. Both subsidiaries are still operational.

“A consortium of two foreign investors put in a bid for $22 million of which $4,4 million was payable to the bank as the shareholder, for MicroKing,” he said.

Meanwhile, the Depositor Protection Corporation has disbursed about $1,4 million to AfrAsia depositors, with about $2 million still outstanding.

AZHL submitted its operating licence early this year, after failing to meet the Reserve Bank of Zimbabwe’s $25 million minimum capitalisation whose deadline was end of June 2014.

As at September 30, 2014, the bank’s capital stood at $13 million, the financial institution had over 6 000 depositors.

Comments (2)

reggie is very unscroupulous..so he wants to sale the banks properties through estate agencies ..would that not include his estate agency which is run by his wife ..matsotsi sana reggie anonetsa.

muzvipi - 5 August 2015

This article is not clear how depositors will be re imbursed, how is Saruchera going to raise the 2 million?only a strategy for creditors has been outlined

Sinyoro - 7 August 2015

Post a comment

Readers are kindly requested to refrain from using abusive, vulgar, racist, tribalistic, sexist, discriminatory and hurtful language when posting their comments on the Daily News website.
Those who transgress this civilised etiquette will be barred from contributing to our online discussions.
- Editor

Your email address will not be shared.