Pelhams now beyond resuscitation says provisional liquidator
PELHAMS Limited’s Provisional Liquidator Christopher Maswi says the company is unlikely to be resuscitated according to an initial assessment carried out so far.
In an interview, Maswi said chances are high that the company will go into liquidation.
“They applied for Provisional Liquidation but indications from the initial assessment show that the company is unlikely to be resuscitated,” he said without giving more detail.
The company was placed under Provisional Liquidation on November 18 following an application by creditors. To that effect, the ZSE temporarily halted trading in Pelhams shares with effect from November 25, 2015 pursuant to Paragraph 4.13.2 of the ZSE Automated Trading System Rules and Procedures pending further announcements.
In a statement last week, the Zimbabwe Stock Exchange CE Alban Chirume notified the investing public of the suspension from trading of Pelhams Limited’s shares from trading with effect from 10 December 2015.
“In terms of paragraph 1.7 of the ZSE Listings Requirements, the issuer applied for voluntary suspension from trading in Pelhams Limited’s shares. Pursuant to meeting the requirements of Section 64 of the Securities and Exchange Act [Cap24:25], suspension of trading in the Company’s shares was granted,” he said.
Chirume said in terms of Section 1.8 of the ZSE Listings Requirements, the Company should continue to discharge its obligations to the Shareholders and the ZSE after the suspension.
Pelhams’ suspension culminated from an application by TN Harlequin Luxaire limited and another creditor after the company had failed to pay its debts to the latter.
It is said the application by TN Harlequin Luxaire Limited to place the company under liquidation followed the refusal by the other shareholders to support TN Harlequin Luxaire Limited’s request to recapitalize the company.
The company’s failure is largely due to the fall in consumer demand and failure by the company’s debtors, who are predominantly civil servants, to pay their debts. FinX
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