By Alois Vinga
TETRAD Investment Bank (TIB) has been moved out of provisional judicial management and has now been handed over to its new management in a development that will see the troubled financial institution return to its normal business operations.
Under Zimbabwean laws, judicial management is when a company’s management functions are taken over by a person appointed by the Master of the High Court in circumstances when a company’s debts exceeds the value of its assets.
Such placement is meant to restore the company’s viability.
TIB was placed under provisional judicial management which was overseen by the Deposit Protection Corporation (DPC) on January 29 2015 after realisation that its debts exceeded assets value by $26, 3 million.
However, a statement issued by the DPC acting chief executive, Vusi Vuma confirmed that the financial institution has been relieved of judicial management.
“The DPC wishes to advise the public that TIB was handed over to its new directors at an extra ordinary general meeting held on October 30 2018,” the statement says.
It pointed out that when DPC took over as provisional judicial manager on July 1 2015, TIB’s net asset position was a negative $33.5 million and as at August 31 2018, the institution’s net asset position had improved to $33.4 million.
This followed the successful implementation of the arrangement which involved conversion of debt to shares and partial payouts to creditors and depositors.
After this stage, TIB will be required to demonstrate full compliance with all the requisite prudential and regulatory requirements before it can resume operations and start mobilising deposits.