eBusiness Weekly
Oliver Kazunga
Border Timbers Limited has exited judicial management after striking an agreement with VP Claimants, a major shareholder over the allotment of final awards compensating it for the loss suffered from the resettlement programme by Government.
The milling and timber manufacturing company went into final judicial management in 2016 after failing to service its debts to several banking institutions.
In a statement accompanying financial results for the year ended June 30, 2021, Border Timbers said:
“The company was placed under judicial management on the 29th of January 2015 and subsequent final judicial management on the 2nd of May 2016.
“Following approval of the shareholders at the EGM and the subsequent approval by the High Court, the company exited judicial management on the 14th of March 2022.
“From this date, the judicial manager has stepped down and handed over the company management to the board of directors.”
In January this year, Border Timbers said its exit from judicial management was mainly dependent on the settlement of a dispute with creditors over US$125 million awarded to the company by the International Centre for Settlement of Investment Disputes.
At their EGM in January this year, it was agreed that in respect of the compensation, 57,5 percent would go to the company while 42,5 percent was for VP Claimants.
The group’s revenue for the year ended June 30, 2021 was $1,48 billion (FY 2020:$1,69 billion), 13 percent decrease from prior comparable period due to Covid-19 restrictions forcing both regional and local markets to temporarily slow business down.
“Expenses were down as compared to the previous period reflecting positive efforts by management in cost containment,” it said.
During the year under review, the company’s major risk was the loss of forestry to fire.
The company lost 26,8 hectares down from 980,7 ha in the corresponding period in 2020.
“This was a result of continuous efforts by the company to strengthen its plantation patrol team, community engagement and upgrading of its firefighting equipment,” it said.
