Grant Thornton Zim successfully revives two troubled firms

Harare, (New Ziana) – Accounting and advisory services firm, Grant Thornton Zimbabwe (GTZ) said on Wednesday it has successfully revived two once struggling firms that were under judicial management.

The firms, Phoenix Consolidated Industries (Phoenix) and Barco Chemicals were under the management of GTZ for years as it implemented initiatives to resurrect them under a court sanctioned protective order.

Judicial management is a debt restructuring process under which a financially stressed company is placed temporarily under the management
of experts, referred to as judicial managers, to attempt to revive it.

During the period, the troubled firm is protected from legal proceedings by individuals and institutions that it owes money, giving it a chance to breathe while the recovery process is underway.

While Phoenix, a former publicly listed company, was placed under judicial manager in 2013, not much is in the public domain about Barco Chemicals.

In separate announcements, Reggie Saruchera, the founder and managing partner for GTZ, said the firms had been successfully rehabilitated and were coming out of judicial management, pending court approval.

“We are pleased to announce that the restructuring and re-organisation of Phoenix Consolidated Industries has (under judicial management) been successfully completed and an application has been lodged with the High Court of Zimbabwe to remove Phoenix Consolidated Industries Limited from judicial management,” he said.

“As soon as the judicial management order is cancelled the board and management of Phoenix will assume full management over the affairs of
the company.”

Saruchera said the same about Barco Chemicals.

Following its troubles, Phoenix, a manufacturer of plastics, steel and allied products, was de-listed from the Zimbabwe Stock Exchange in 2016
to allow it to put its house in order and it has been on a recovery path since them, improving both production and profitability.

Grant Thornton has over the years become one of the go to firms for corporate recovery and re-organisation in the country.
New Ziana