Business Reporter
Monachrome Private Limited’s shareholders are engaged in discussions to offset what is owed to the now defunct Kingdom AfrAsia bank as efforts to resume the company’s operations gather pace.

Currently the company’s debt stands at $17 million. Kingdom AfrAsia bank which is owed $4 million is the biggest creditor.

“We are in communication with AfrAsia Bank, which is the only secured creditor on the list. We are hopeful that the transaction will be completed soon so that operations can resume,” said MonaChrome judicial manager Mr Christopher Maswi yesterday.

He said once an agreement has been reached between the investor and the secured creditor then operations can definitely start.

MonaChrome creditors last year accepted a $4,5 million bid from the a German investor, NK Trading who is now looking at restoring the fortunes of the chrome smelting company.

Prior to the approval of NK Trading, two local investors had formally submitted bids worth about $4,3 million each for the acquisition of the company and this saved the company from the jaws of liquidation.

The lifting of ban on the export of chrome will go a long way in ensuring viability of MonaChrome. This move is going to enable the domestic chrome industry to mobilise financial resources, investments into technology, generating income, increasing smelting capacities as well as employment.

MonaChrome was formed in 2008 when it was initially registered as a shelf company under the name Monawood Trading (Pvt) Ltd.

In July 2009 it was registered by the Zimbabwe Investment Authority in accordance with the ZIA Act (Chapter 14:03), under investment license number 000521.

In April 2011, the company changed its name to MonaChrome and commenced production after the construction and commissioning of a 6 300 KVA smelter.

The MonaChrome smelter produces an average of 36 tonnes of ferrochrome per day which converts to 12 600 tonnes of ferrochrome per annum.

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