HomeBusiness DigestCDH liquidator recovers $4 billion more

CDH liquidator recovers $4 billion more

Shakeman Mugari

CECIL Madondo, the liquidator of collapsed Century Discount House (CDH), says his Tudor House Consultancy (THC) has recovered a further $4 billion from CDH debtors and will start distributing

the funds to proven creditors and depositors in two weeks’ time.

It also emerged this week that his $41 billion claim against Century Holdings Ltd, now part of CFX Financial Services, would only be heard early next year at the High Court.

Madondo also said he was pursuing Zimbabwe Banking Corporation (Zimbank) over a $4 billion claim, after the bank prematurely liquidated Grain Marketing Board bills.

The $4 billion recovery, from yet unnamed CDH debtors, brings to $14 billion the amount of money raised by the liquidator since he was appointed early this year to trace and reclaim assets of the failed discount house.

It also means that 30% of CDH assets have been recovered so far and this translates into a 0,30 cents payout per every dollar to creditors and depositors, Madondo said.

“We will be paying out the second dividend to the proven creditors within the next 12 days. In fact, we have already started the process,” Madondo said on Tuesday.

“We are still pursuing the major cases, but we have since recovered all of CDH’s fixed assets, which includes vehicles and computers.”

About $5 billion has also been recovered from the $41 billion claim against ENG Asset Management, which is also under liquidation. The asset management firm is an appendage of ENG Capital, allegedly plundered by its two youthful founding directors Gilbert Muponda and Nyasha Watyoka.

When the fraud case surfaced earlier this year, the duo had allegedly siphoned $61 billion out of the Harare bank.

The Century claim also includes 11 former directors and senior managers of CDH, while the Zimbank claim arises from the fact that the Financial Holdings Ltd subsidiary had liquidated its GMB bills before their maturity after realising CDH’s unhealthy status.

There is a further $12 billion worth of bank acceptances (BA) which the liquidator is still trying to recover.

“We expect that all these cases will be in the court early next year and our forecast is that they would be concluded in the third quarter of the same year, after which we will start paying out the final dividend,” said Madondo.

The liquidator, however, added that he expected to extract a further $9 billion from the Century Holdings claim. Out of the $12 billion bank acceptances hunt, $5 billion is recoverable according to Madondo’s projections, while the total Zimbank claim’s success prospects were also looking good.

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