11/4/2011 1:30:00 PM
NEWS BRIEFS
Judicial Manager Takes Over Zimbabwe Fastener Manufacturer

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Steelnet, a Zimbabwe manufacturer of fasteners, steel pipes and agricultural implements, opted for a voluntary judicial management to gain US$3.4 million in capital, allAfrica.com reported.
Christopher Maswi, director of Fairvalue Management Consultancy, was appointed provisional judicial manager. The judicial manager is supervised by the Master of the High Court in running the company. He replaces the board of directors form of management.

Steelnet is listed on the Zimbabwe Stock Exchange and its shares have been suspended from trading.

Maswi’s will report on the state of the company, the reasons for viability problems and develop a rescue plan, outAfrica.com reported.

Steelnet’s total liabilities stood at US$4.6 million at the end of May 2011. In 2010, the company injected US$270,000 to capitalize the company.

Steelnet, which operates three business units, saw its working capital eroded during the hyperinflation period between 2007 and 2008, allAfrica.com reported.

Under judicial management Steelnet has a moratorium on debts and all actions against the company are suspended. The breathing space allows formation of a rescue package and the company continues operating.  ©2011 GlobalFastenerNews.com

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