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Exchange.
This follows revelations that its financiers are closing and will not renew its credit facilities.
Chief executive Mrs Chipo Mtasa said recent media reports insinuated that RTG shares had been suspended as a result of fraudulent activities.
She said all this threatened the commercial viability of one of the country’s hospitality giants.
Mrs Mtasa said RTG, in view of termination of credit facilities by its bankers, could plunge into serious capital turmoil.
Finance Minister Tendai Biti directed suspension of RTG and Afre Corporation shares last month to allow investigations into alleged illegal inter-party transactions related to Renaissance Merchant Bank, now under curatorship.
Renaissance holds 32 percent in Afre, which has a 26 percent interest in RTG.
While Minister Biti eventually lifted the suspension, the Securities Commission immediately issued a statement advising investors that the readmission of RTG and Afre on the bourse was premature. It advised investors to exercise caution when dealing with RTG shares.
“We are deeply concerned about these developments and the negative effect on our business and the tourism industry as a whole,” said Mrs Mtasa in a letter to ZSE chief executive Mr Emmanuel Munyukwi.
The letter was copied to the SEC and the Ministry of Tourism and Hospitality Industry.
“The reports in the media insinuate that RTG had been suspended because of fraudulent activities at the company, now threatening its commercial viability.
“We have never received information regarding any investigations into financial irregularities at Rainbow,” said Mrs Mtasa. “We are unaware of any events or activities at RTG that would require investigations of this nature.
“Our bankers are closing down our facilities and no new facilities can be accessed as we have become a high risk company overnight. The foregoing affects our ability to fund our working capital.”
Mrs Mtasa said revenue inflows had been affected as some of its international suppliers were cancelling bookings over the uncertainty of dealing with RTG.
“You would understand that the relationship between international suppliers and the services sector is essentially built on trust. Once this has been destroyed, it takes years to rebuild,” she said.
She said she was also concern over future capital-raising initiatives such as the rights issue. She said it was unlikely that shareholders would support the offer.
“It is unlikely that our shareholders will give us the support that we require in the event that we undertake the rights issue as a result of the closure of the Rainbow Tourism Group counter.
“We cannot over-emphasise the importance of this rights issue to the operations of our business,” she said. No comment could be obtained from Mr Munyukwi as he was said to be in meetings last Friday.
RTG operates hotels and lodges in Zimbabwe, Zambia and Mozambique.