SMM to sell land, properties to clear debt
Harare, (New Ziana) – Fallen asbestos producing giant, Shabanie Mashava Mines Holdings (SMM Holdings) plans to dispose land and properties it owns to help pay off debts and recapitalise to resume operations.
The company was mothballed nearly 15 years ago and placed under the
management of an administrator, choked by massive debts mainly to the government.
Restarting operations has remained a dream due to slow and complicated
procedures, legal and otherwise, that have had to be followed.
As part of the restructuring process under the Reconstruction of State
Indebted Insolvent Companies, government became a major shareholder in
the firm following a debt to equity conversion, taking control from
businessman, Mutumwa Mawere.
The firm’s administrator, Arafas Gwaradzimba of AMG Global, said as part of the company’s revival, plans were in progress, under a government sanctioned scheme, to dispose of massive land and properties owned by the firm in the Zvishavane and Mashava towns.
“The scheme’s main purpose is to raise funds in order to clear the company’s indebtedness, and to enable it to resume its mining operations which are its core business, Gwaradzimba said.
“Accordingly, in the scheme, the Administrator proposed that the company creates freehold land, subdivides this freehold land resource, and raise capital through the sale of the said freehold land.”
While the total funds required to clear the debt and kick start operations was not immediately clear, it is estimated the firm, which at its peak had over 20 subsidiaries and employed over 4 000 people, requires millions in United States dollar to get things going.
Gwaradzimba said in Zvishavane and Mashava, the firm owned land running into thousands of hectares and over 6 000 housing stands.
“…the administrator considers that if the properties can be disposed of at prices as close as possible to professional valuations referred to, the company will be able to raise all the funding required for the completion of its reconstruction, becoming a going concern, once again,” he said.
The firm, he said, will be able to appoint an interim board to run its
affairs after all creditors have been paid, and all the subsequent legal processes followed to get it out of reconstruction.