Zimbabwe News and Internet Radio

Tetrad creditors hopeful of bank revival

Creditors of closed Tetrad Investment Bank (TIB) are hopeful the financial institution can be revived and that they will become shareholders in the institution, which owes them over $50 million.

TIB was closed by the Reserve Bank of Zimbabwe early 2015 after failing to mobilise funding to boost its capital base.

The bank was subsequently placed under provisional judicial management.

At its closure, Tetrad had a negative core capital of $32,7 million when it was supposed to have a minimum of $25 million.

A recent meeting of the creditors revealed that the judicial manager, Mr John Chikura of the Deposit Protection Corporation (DPC) was angling for the revival of the institution with creditors being the major shareholders.

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“The basis of the new entity will comprise assets of TIB that have been reduced to between $20 million and $30 million. At our last meeting with DPC, we were provided with a list of TIB assets and the top 20 debtors to the bank,” read minutes of the last creditors meeting held last month.

“Creditors will become the major shareholders and the assets will be used to provide a return to creditors.”

The minutes show that the DPC intends to approach the High Court for an arrangement that allows the assets of the bank to be protected while the judicial manager attempts to put the house in order.

The move would, however, require Tetrad Holdings and the current TIB shareholders to consent to the move.

At some point the DPC put up TIB for sale but failed to find suitable suitors. The Chronicle