Merlin postpones creditors' meeting

Merlin postpones creditors' meeting
Published: 28 September 2017
THE High Court in Bulawayo has postponed Merlin's creditors and members' meeting to October 18. The creditors and members' meeting was supposed to be held at the High Court in Bulawayo yesterday.

In an interview, the judicial manager of the defunct Bulawayo-based textile company Mr Cecil Madondo said: "The creditors and members meeting that was scheduled for September 27 at the High Court in Bulawayo has been postponed to October 18 following our request to have it rescheduled because the sort of information required from the investor's side at the meeting is yet to be availed."

"Some of the information is in line with the creditors and members' meeting hence it is confidential and cannot be discussed right now."

The firm, which is ready to resume production, is focused on moving out of judicial management within 12 months of re-opening.

The textile company requires $30 million in the long-term to operate at full throttle.

The company is yet to secure an institutional investor expected to inject the required $30 million but a resolution has been made to resume operations with minimum capital.

Merlin was placed under judicial management in 2012 for the second time in 10 years and requires about $2.1 million in the short-term.

Mr Madondo is on record saying the textile firm was ready to resume production after identifying a joint venture partner to invest additional capital.

He said due to a Non-Disclosure Agreement with the partner, they were not able to reveal the investor.

Merlin wants to take advantage of the establishment of the Special Economic Zones and is planning to establish a ginnery to supply it with the required raw materials.

The setting up of the ginnery is part of the business rescue strategy as it would set up its own ginning plant to create a complete production cycle.

Under the Special Economic Zones (SEZs) initiative, which is in sync with the value addition and beneficiation thrust under Zim-Asset, the Government has earmarked Bulawayo for clothing and textile and the leather sectors.

In the past, Merlin used to produce high quality textile products such as napkins and towels, among others.

Through the proposed ginning plant, the textile concern intends to produce and sell yarn.
- chronicle
Tags: Merlin,

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