HomePoliticsCentury recovers $9,2b from debtors

Century recovers $9,2b from debtors

Shakeman Mugari

CENTURY Discount House (CDH), which is currently under liquidation, has so far recovered $9,2 billion from individual and corporate debtors.

l, Helvetica, sans-serif”>The liquidator, Cecil Madondo of Tudor House Consultants, this week confirmed that he had recovered the money on behalf of CDH.

He has since begun making payouts to the 232 creditors after the Master of the High Court approved the account last week.

The discount house’s creditors include individuals, large financial institutions and government departments. Madondo said the creditors would be paid in three categories.

About $1 billion would be paid to unsecured creditors while close to $4,8 billion would be disbursed to secured creditors.

Another $384 million would be paid to preferential creditors such as the Zimbabwe Revenue Authority (Zimra) and the National Social Security Authority (NSSA).

CDH owes an estimated $12 billion to Zimra but in his first progress report the liquidator said the tax authority’s claims were likely to be reduced to $800 million. CDH also owes a substantial amount to NSSA.

“We have started writing out cheques to the creditors and we expect to have disbursed the initial amounts by the end of this month,” Madondo said. He said he sought legal assistance to recover a further $17 billion from debtors.

“Most of the outstanding issues involve litigation cases which are now in court. Because of the court process, it might take us between six to 12 months to recover the amount,” Madondo said.

The sale of movable property was now complete save for two vehicles worth $200 million and computers valued at $50 million.

The targeted amount also includes $12 billion worth of bankers acceptances, which were not properly handled.

There are also Treasury Bills and millions of dollars owed by individuals and large financial institutions.

A five-member legal team comprising three lawyers and two advocates has been set up to pursue the litigation route against some of the debtors.

The liquidator has also launched a $42 billion claim against ENG Asset Management company but has only managed to recover $1,4 billion.

“I expect to recover just $3,5 billion out of the $42 billion that CDH is claiming against ENG,” said Madondo.

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