Tetrad Bank's Future Uncertain

Stakeholders of the troubled Tetrad Investment Bank Limited are divided over whether the bank should be placed under final judicial management or face liquidation.

At a meeting of the bank’s creditors and members held before the Master of High Court in Harare this Wednesday, shareholders and workers proposed that the bank continues operating.

Creditors and depositors are however lobbying for liquidation, while the Judicial Manager, Mr Winsley Militala is proposing final judicial management.

The meeting was held at a time two investors have shown interest in saving the institution from collapse by injecting fresh capital in return for shareholding.

However, representatives of the potential investors told stakeholders at the meeting that they are finalising their due-diligence processes as well as conforming to the country’s investment regulations before tabling their offers.

A report from the Judicial Manager shows that Tetrad, which was stopped from taking deposits by the central bank last year, has assets worth US$43.5 million against liabilities of US$69.8 million.

This makes it insolvent and financial experts say only fresh capital injection can restore viability.

The suspension of Tetrad from taking deposits and issuing loans until it finalises its recapitalisation exercise was made to protect the public.

It was also made following continuous failure by the financial institution to honour maturing liabilities including loans.

 

 

ZBC