Victoria Foods ready to exit judicial management

23 Jul, 2021 - 00:07 0 Views

eBusiness Weekly

Business Writer

CFI HOLDNGS Limited’s subsidiary, Victoria Foods (Private) Limited, is set to come out of judicial management after the milling company was successfully restructured and settled legacy disputes with its creditors.

Victoria Foods, together with its sister company, Agrifoods, a stockfeed manufacturing firm, were in 2016 placed under provisional judicial management before being subsequently placed under judicial management to allow for debt restructuring, re-organisation and recapitalisation.

At that time the two business units required US$12 million for recapitalisation.

In a statement Victoria Foods judicial manager Reggie Saruchera, advised that Victoria Foods (under judicial management) has been successfully restructured and reorganised.

“The company has settled with its creditors and has been nursed back to financial health. The application to remove the company from judicial management will be lodged with the High Court of Zimbabwe,” he said.

“Once the order is granted, the board and management of Victoria Foods will assume control over the company.”

It is hoped that the removal of Victoria Foods from judicial management would bolster CFI’s contribution to national food security and the group’s turnaround efforts.

“We take this opportunity to express our sincere gratitude to the shareholders, management, staff, creditors and all stakeholders for the support rendered during the judicial management process,” said Saruchera.

“We wish the board and management all the best in the future as they continue to pursue their path to growth in the milling industry and create value for all stakeholders.”

During the 2021 financial year, the CFI board has committed to further recapitalise all the group’s business units. The firm’s other subsidiaries include Glenara Estates and Crest Poultry Group (CPG), which consists of Hubbard Zimbabwe, Crest Breeders, and Suncrest Chickens that are all under care and maintenance.

The management of a consistent raw material supply line for Agrifoods and Victoria Foods will remain an on-going priority given the current liquidity situation in the economy and long delivery lead times for imported products.

CFI is a leading agricultural-based industrial holding company primarily involved in manufacturing and selling fresh produce and manufacturing stock feed, as well as property management and letting.

Through its subsidiaries and joint ventures, it manages wholesale and retail outlets, offers products and services for animal health, operates maize and wheat mills, and is involved in poultry farming and producing and selling poultry products.

CFI manages a separate entity offering services for the development and management of real estate in Zimbabwe. STALAP Investments, an investment vehicle owned by Zimre Holdings is now the largest shareholder in CFI after increasing its stake in the company to over 40 percent.

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