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Martin Kadzere Senior Business Reporter
ZIMGLASS Holdings has put on hold plans to liquidate the company in order to consult creditors on the proposed move, judicial manager Mr Winseley Militala said yesterday.

“The company shareholders made a decision to liquidate the business and when we instructed the lawyers to make the application, we were advised to put everything on hold,” Mr Militala said in an interview.

“The shareholders wanted to consult key creditors such as banks before proceeding with the court application.

He said Zimglass took a decision to wind up operations after struggling to secure investors.

The company owes creditors an amount in excess of $30 million. At the last creditors’ meeting in October last year, creditors resolved to give Mr Militala six months to March this year to find a suitable investor, but nothing materialised.

In April, the creditors gave Mr Militala two more months to find an equity investor.

“As far as investors are concerned, we don’t have serious people willing to come on board and this is the reason why shareholders have taken the decision to liquidate the company,” he said.

Zimglass was placed under provisional judicial management in August last year and remains closed.

In the second report presented to creditors and members in March, Mr Militala said while Zimglass presented an investment opportunity for fund holders in the region, they were reluctant to undertake expensive pre-investment

work in the absence of key fundamentals.

These include competitive advantages such as infrastructure and the cost of production.

Zimglass has installed monthly capacity to produce about 240 tonnes of glass material for making bottles of beer, soft drinks, food, pharmaceuticals as well as kitchenware.