Tetrad Bank seeks new investors

HARARE - Collapsed Tetrad Investment Bank (Tib) is looking for new investors after its members and creditors have agreed to a scheme of arrangement involving a partial cash payment and conversion of debt to equity.

This will result in a clean balance sheet with the bank — currently under judicial management — having an equity approximating the minimum capital threshold of $25 million. 

This comes after the ailing bank — part of the Tetrad Holdings Limited group, which comprises an asset management company and a micro-lending unit — has been scrounging for investors in the past four years to inject fresh capital.

The Depositor’s Protection Corporation (DPC) this week called on interested parties to make fresh bid for the acquisition of the fraught financial institution.

“Tenders are hereby invited from interested parties to acquire the entire shareholding in Tetrad. Interested parties are required to register their interest with Tetrad Transaction Advisors, BDO Tax and Advisory Services…” said DPC — the judicial manager of Tib.

According to the statement, interested parties should complete registration forms showing interest to participate in the tender process and pay a non-refundable documentation fee of $1 000.

They are also required to sign a non-disclosure and confidentiality agreement prior to receiving the bank’s information memorandum and other relevant documentation.

“This invitation is not a prospectus and does not constitute or form any part of any solicitation or invitation or any offer to the public to purchase or to subscribe to any ordinary shares or any other shares in Tetrad Investment Bank Limited (under Provisional Judiciary Management),” DPC said.

The latest development comes after Tib creditors recently formed a Trust demanding the prosecution of bank management.

The Trust — which was formed with the aim of probing the struggling institution for a forensic audit — is also demanding that an investor be secured for the bank.

In November 2014, the Reserve Bank of Zimbabwe (RBZ) suspended Tetrad from taking deposits and issuing loans until completion of its recapitalisation exercise. The bank has assets worth $42,7 million against liabilities of $70 million.

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