Agro-industrial concern Border Timbers has been placed under judicial management despite having shown signs of recovery last year when it narrowed its loss for the full-year to June by 54 percent to $4.3 million.
The company, a subsidiary of Rift Valley Corporation, was last January placed under provisional judicial management after failing to service debts to several financial institutions worth $20 million.
“Take notice that on the 2nd day of March 2016, the High Court at Harare issued an order placing Border Timbers Limited under judicial management,” the High Court said in a notice in the government gazette.
Peter Bailey has been appointed as judicial manager of the company.
Previously, Bailey had indicated that turnaround strategies that had been put in place both before and during provisional judicial management were beginning to bear fruit and that the company had been able to sustain operations without any external funding.
Bailey had also said the company was in negotiations with local banks and the majority shareholders on debt restructuring, with an agreement expected in the near future.-The Source
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