HARARE — Cash-strapped Starafrica corporation may not meet the court sanctioned deadline of February 14 to pay creditors as the company is struggling to dispose of its transport asset and a 33,3% stake in Tongaat Hulett Botswana to raise the payment.
On Friday, the company said a notice of intention to sell its stake in Tongaat Hulett Botswana had been given to the Botswana firm, with a formal response expected by March 5. Star Africa got an offer of BWP51,2 million ($5,6 million) for its interest in the Botswana firm.
“It anticipated that the disposal will be completed and the proceeds of the sale received by 30 April 2014,” the company said in an update.
The company said negotiations with a local prospective purchaser for its transport company, Blue Star Logistics was “nearing conclusion.”
The High Court last year sanctioned a scheme of arrangement between the technically insolvent company and its creditors requiring it to dispose its two assets within six months from 14 August, 2013 and settle its obligations.