Wednesday, October 9, 2013

ZSE suspends trading in Phoenix Consolidated Industries shares

By Jeffrey Mumba

The Zimbabwe Stock Exchange has suspended trading in Phoenix Consolidated Industries Limited’s shares following the company being placed under judicial management. “In terms of Section 1.8 of the Stock Exchange Listings Requirements, the Company should continue to discharge its obligations to the shareholders and the Zimbabwe Stock Exchange after the suspension,” the local bourse said in a statement.
Phoenix Consolidated Industries Limited was granted an order by High Court to be placed under provisional judicial management on 2 October 2013 with Reggie Saruchera of Grant Thornton Camelsa being appointed the judicial manager. The company was formed after the unbundling Of Apex Corporation Of Zimbabwe Limited.

The company which has been facing serious financial problems comprises of five companies namely, Phoenix Brushware, Scandia Wire, John W Searcy, William Smith and Gourock and Pacprint.
Farai Rwodzi and Timothy Chiganze sit on the board as non-executive directors, while Francis Rodrigues is the Chief Executive Officer.

The collapse of Phoenix Consolidated Industries is among a growing list of the controversial businessman’s falling empire. Rwodzi and his close business partner Adam Molai, through their
vehicle Benscor Investments, acquired ZimAlloys from AngloAmerican Corporation in 2010.
ZimAlloys which is Zimbabwe’s second largest ferrochrome producer, recently announced that it had secured a US$60 million loan from Global Emerging Markets to rebuild its three furnaces. The rebuilding of the furnaces is expected to last 12 months. The company has also been forced to shelve operations due to lack of working capital.

Another of Rwodzi’s fallen businesses is Eastlea SPAR which shut down last year. The supermarket was owned by Rwodzi and his wife Lorah. The retail concern shut down with over $1 million exposure to troubled Interfin Bank.

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