Cash-crisis hampers AfrAsia liquidation

HARARE - Afrasia Bank Zimbabwe (AfrAsia) judicial manager Regie Saruchera says the current liquidity crisis in the market is affecting liquidation of the  defunct financial institution.

“In reference to our last update which anticipated a dividend payout during the second half of 2017, we would like to update that, legal proceedings and the illiquid market have continued to impede the anticipated timing of the liquidation distributions,” he said in an update to creditors.

“Currently we are working on transactions which if concluded a dividend of between 10 and 15 cents per dollar may be paid out.

“Due to these developments the third interim dividend is likely to be paid in the first quarter of 2018 to concurrent/unsecured creditors after all preferred creditors have been paid,” he said.

The liquidator agent has so far paid two interim dividends amounting $2,95 million to preferred creditors only.

The bank’s licence was cancelled in 2015 by the central bank after it was deemed to be no longer in a safe and sound condition in that the institution is grossly undercapitalised and is facing chronic liquidity challenges.