Published: 29 January 2014

Phoenix Consolidated Industries Limited is considering delisting from the Zimbabwe stock exchange as part of the company's turnaround strategy.

In a report presented to creditors at the High court this morning, the company's judicial manager Mr Reggie Saruchera said this was a way for the company to sort out its financial crisis without public scrutiny.

"Delisting will give us a chance to sort out our problems without public scrutiny and we would then consider listing again once our operations are back to full capacity. We want to get the chance to dispose of some of our unproductive infrastructure as part of our strategy to boost revenue for the group," Mr Saruchera said.

Phoenix was suspended from trading on the Zimbabwe stock exchange in October last year after the company had gone into liquidation.

The company's operations have been affected by the soaring debt and the cost of borrowings also affected the group's performance especially during the hyperinflation era.

The company, which is battling to remain afloat is suffering with liquidity constraints, lack of capital to boost its operations and high level of borrowings and a debt of $2.5 million.
- bh24

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