A step closer for Interfin Bank liquidation

Interfin1HARARE – The Deposit Protection Board (DPC) could soon commence payments to Interfin Bank creditors with a special meeting of creditors and members of the defunct banking institution set for the Master of the High Court next week Thursday.

DPC chief executive and liquidator of the bank Mr John Chikura said the meeting should see creditor submitting ‘further’ proof of claims.

The development will likely expedite the liquidation of the bank.

“The purpose of the meeting is submission of further proof of claims by creditors,” said Mr Chikura.

He however added that creditors that had already proved their claims before the Master of the High Court, were not required to submit another set of forms, or even attend the meeting.

Interfin, was placed under liquidation at the beginning of last year after it failed to secure $50 million in fresh capital during a three-year curatorship despite reported interest from several potential investors.

The DPC last year confirmed that it had carried out a forensic investigation on Interfin’s failure which showed that the financial institution had collapsed largely as a result of high levels of non-performing insider loans.

At the time, DPC had said “additional information” was required to finalise the liquidation process.

To the extent that the bank is successfully liquidated, the creditors will try and get as much of the money owed to them as possible as they have first priority to whatever is sold off.

But with Interfin Bank’s creditors owed $155 million, against the bank’s assets estimated at around $39 million, the former unanimously voted at the last creditors’ meeting in June last year to institute legal proceedings against the bank’s directors for the prejudice they suffered.

The bank had been under the management of a curator for two and half years before the Reserve Bank of Zimbabwe said at the close of 2014 that it would not extend the curatorship of the bank, paving way for its liquidation .

As at June 30, 2012 the bank had a negative core capital of $92,9 million while its shareholders failed to inject the required $142,9 million in order to comply with the then minimum capital requirement of $50 million.

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