HomeBusiness DigestTetrad Bank’s doomsday nigh

Tetrad Bank’s doomsday nigh

HOPES of a Tetrad Investment Bank bailout are rapidly fading amid indications Horizon Capital Consortium (HCC), a Russian firm that has expressed interest in acquiring a controlling stake in the troubled bank, has repeatedly failed to show up for meetings to discuss the proposed takeover, businessdigest has established.

Kudzai Kuwaza

HCC was last year locked in negotiations to acquire a controlling equity stake in the diversified financial company, Tetrad Holdings Ltd which owns Tetrad Investment Bank, in a deal worth US$50 million.

The delays are causing much anxiety after the bank was at a creditors meeting last month given a month to finalise the deal or face liquidation. The creditors also demanded that HCC representatives be present at the next meeting scheduled for April 22 2015.

The failure by HCC to finalise the deal has sapped hopes of a bailout package for the financial institution saddled with a 99% non-performing loan book with total liabilities exceeding assets by US$26,3 million. Tetrad shareholders held a meeting last week to discuss the continued delay.

“The investor was supposed to have come earlier to hold talks over finalising the deal but the representatives have failed to come for the discussions despite promising to do so. This is a development that has caused concern for the bank with a meeting with creditors looming,” a source revealed.
“The last meeting was held to discuss the protracted delays by the investor.”

Insiders said the situation is now bleak with the dreaded prospect of liquidation looming ever large.

“Unless something dramatic happens, it looks like 22 April (the day of the meeting with creditors) will be doomsday,” a senior bank official told businessdigest.

In his report, provisional judicial manager Winsley Militala recommended that the bank undergoes provisional liquidation for creditors to salvage the remaining value for the benefit of depositors and creditors.

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