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RDH pays out creditors

Paul Nyakazeya


RAPID Discount House (RDH), which is under liquidation, has paid a total of $29,5 billion to its creditors.

Sources privy to the developments told businessdigest that RDH liquidator, Maxwell Mubaiwa, last month paid a further $9,3 billion un

der the second interim liquidation and distribution exercise which was done in May.

Comment could not be obtained from Mubaiwa of Ernst & Young Trust Company, but sources said the discount house’s creditors were paid a dividend of 16 cents for every dollar they were owed under the second interim distribution exercise.

This brought the dividend payout to 33 cents for each dollar after 17 cents paid during the first interim liquidation which was done in October last year.

“After the second interim distribution account, the total amount distributable to both secured and unsecured creditors came to $25,9 billion,” the source said.

Creditors who had not proved their claims by April 26 are said to have received no payments.

The discount house collapsed in 2003 after the Reserve Bank established that it was not in a sound financial position.

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.

He is suing the five former directors of the collapsed financial institution for $30 billion.

Businesdigest understands that the prosecution of the institution’s former directors had commenced with submissions having already been lodged with the relevant courts of law but a trial date has not yet been set.

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