THE High Court has cancelled an order which placed milling and timber manufacturing company Border Timbers Limited (BTL) under final judicial management after the company successfully completed its turnaround strategy.
The cancellation was made on March 9, according to a notice of cancellation of the final judicial management order.
“Pursuant to the cancellation of the final judicial management order, Peter Lewis Bailey has been divested of his powers as the final judicial manager of the company,” the statement read.
“Management and control of the company has been returned to the board of directors of the company,” part of the notice read.
In January 2015, BTL applied to be placed under provisional judicial management as it faced viability problems which, at the time, left its 17 000-strong workforce edgy.
It was a difficult time not only for BTL but several firms in the manufacturing industry, which were affected by foreign currency shortages and depressed growth.
These problems have continued to haunt Zimbabwean firms until today.
BTL in 2015 said the decision to apply for judicial management came after one of its major creditors took the company to court to recover funds.
By the end of 2021, the company had disposed of its loss-making subsidiary Border Timbers International and writing off $4,5 million in the process as part of a restructuring exercise which turned the firm’s fortunes.
In a trading update for the first quarter of its current financial year ended September 30, BTL said it continued to focus on strengthening its balance sheet and profitability by improving its biological assets and the related value chains.
“Key focus is also on recapitalisation of the company’s sawmills so that they are equipped with modern machinery which results in high efficiency and profitability,” the company said.
In a trading update for the year ended June 2021, BTL said its financial position continued to grow stronger and pacifying measures are in place to ensure continuity and viability of operations.