CAPS Holdings is set to inject US$10 million sourced from shareholders in a bid to offset the company's debt and facilitate a restructuring exercise before resuming operations, a major shareholder has said. The pharmaceutical company has been bedevilled by a number of challenges, including shareholder-management wrangles.
A local financial institution, CBZ Bank, has also taken the firm to court after it failed to service a US$4,4 million debt and threatened to attach the company's properties.
CAPS Holdings chairman, Fred Mutanda last week told Standardbusiness that the money would be injected into the business to offset outstanding debts owed to banks and all other creditors.
"The money will be available within the next three to four weeks and certainly, when we inject the money, workers who are part of the people owned money will be paid," he said.
Mutanda said the company's shareholders resolved to recapitalise the business in the post-dollarisation era, hence the calling for the extraordinary general meeting in 2011. At the meeting it was resolved that the company would have to restructure by creating three separate business units and getting rid of CAPS Holdings altogether.
Consequently, there was a fall-out between shareholders and management as the latter was against the idea. "We are restructuring as authorised by the board on the 30th of June 2011 and there will be three business entities namely, healthcare, manufacturing and CAPS international," he said.
The company, he said, would next week be carrying out a validation and re-testing exercise at its factory in order for it to be standardised.
This would involve testing available drugs, including those which are in bond and then quantifying them. The Medicines Control Authority of Zimbabwe would then certify the process before the company can resume operations.