CREDITORS of Rapid Discount House (RDH), which is under liquidation, could this month be smiling all the way to the bank after a High Court m
eeting ordered that they receive their outstanding payouts.
Sources privy to events at the meeting held on April 26 told Businessdigest that RDH liquidator, Maxwell Mubaiwa, told creditors at the convention held before the Master of High Court, that he would pay out a total of $9,3 billion under the second interim liquidation and distribution exercise expected to commence this month.
“The liquidator advised us (creditors) that this was the last special creditors’ meeting. The discount house’s creditors would be paid a dividend of 16 cents for every dollar they are owed,” said a creditor who attended the meeting.
Mubaiwa, of Ernst & Young Trust Company, had so far distributed a total of $16,6 billion under the first interim distribution account made last year.
Each creditor would have received 33 cents for each dollar after the second distribution is complete.
During the first interim liquidation made in October last year, each creditor received 17 cents for every dollar owed.
After the second interim distribution account, the total amount distributable to both secured and unsecured creditors would come to $25,9 billion.
“Creditors who had not proved their claims by April 26 would not receive any money under the remaining distribution accounts,” the creditor said. The liquidator is said to have used the same occasion to tell creditors that processes for the prosecution of the institution’s former directors had commenced with submissions having already been lodged with the relevant courts of law.
According to Mubaiwa’s findings, RDH’s collapse was precipitated by business malpractices, notably the advancement, with the blessing of the directors, of non-performing insider loans to privileged clients.
Sources said Mubaiwa told creditors that what remained, with respect to the litigation issue against former directors of RDH, was the trial date, which would be advised soon.
The liquidator is suing five former directors of the collapsed financial institution for $30 billion.
Mubaiwa replaced Clemence Ruzengwe of HLB Ruzengwe and Company Chartered Accountants, who was first appointed curator.