Pay dates for Royal, AfrAsia creditors

HARARE - The Depositors Protection Corporation (DPC) says it has set in motion the process of paying preferred creditors for Royal and AfrAsia banks.

“The AfrAsia draft first interim liquidation and distribution account was finalised and lodged with the Master of the High Court for approval,” DPC chief executive John Chikura said yesterday in an update on the state of affairs at five banks that went under.

The DPC boss added that the disposal of the bank’s assets and recovery of loans was still on-going, but proceeds of the interim account were to pay pension contributions for AfrAsia employees, National Social Security Authority (Nssa) contribution arrears, the Zimbabwe Revenue Authority and Zimbabwe Manpower Development Fund.

“The figures payable to preferred creditors will be disclosed to creditors once the account has been approved by the Master of High Court,” he said.

Chikura said unsecured creditors were to receive dividend once all the preferred creditors were paid in full.

With regard to Royal, Chikura said the first interim liquidation and distribution account was approved last year, with the disposal of the bank’s assets and recovery of loans is still underway.

The DPC boss said disposal of immovable assets and recovery of outstanding loans had taken longer than initially anticipated and attributed the slow progress to external factors such as illiquid market conditions and legal processes.

“We expect to declare a second dividend within the next six months and we will send the relevant notices to all the creditors and members of Royal Bank at the appropriate time,” he said.

According to DPC, a total of 297 Interfin claims valued at about $126,5 million had been provisionally accepted by the Master of the High Court.

“DPC is now in the process of preparing the first interim liquidation and distribution account for Interfin. Only preferred creditors, that is, Interfin employees, Nssa and Zimra will be paid from the First Interim Liquidation and Distribution Account,” Chikura said.

He added that Allied Bank’s depositors disbursements had stalled after a dispute concerning the bank’s immovable assets had taken centre stage with the matter currently in court.

Concerning Trust disbursements, Chikura said there had been no developments since June 2015 when the former shareholders of Trust filed opposing papers against final liquidation.

Comments (1)

Will any sane Zimbabwean put his money in a bank wholly owned by fellow Zimbabweans? History will show anyone who cares that Zimbos are very poor custodians of other people's financial resources. From Rodger Boka in the 90s to the current crop of swag loving youngsters such Farai Rwodzi and others. Driving big cars on other people's money. Sad really.

Conrade - 14 April 2016

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