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Oliver Kazunga, Senior Business Reporter
TETRAD Investment Bank (TIB) has been removed from provisional judicial management and handed over to its new management as the institution seeks to resume normal operations.

The investment bank was placed under provisional judicial management in 2015 after a deal with Horizon Capital Consortium Zimbabwe, the prospective investor that had agreed to recapitalise the institution, failed to materialise.

TIB was then placed under the provisional judicial management of the Deposit Protection Corporation (DPC).

In a statement, the DPC said the removal of TIB from provisional judicial management entails that the investment bank demonstrates full compliance with all the requisite prudential and regulatory requirements before it can resume operations and start mobilising deposits.

“DPC wishes to advise the public that TIB was removed from provisional judicial management handed over to its new directors at an extraordinary general meeting held on October 30, 2018 in terms of the High Court order HC 219/15,” it said.

When the DPC took over as the provisional judicial manger on July 1, 2015, TIBs net asset position was a negative $33,5 million.

As at August 31, 2018, the banking institution’s net asset position had improved to $33,4 million following the successful implementation of the scheme of arrangement, which involved conversion of debt to equity and a partial cash pay-out to creditors and depositors.

The scheme of arrangement was implemented on November 15, 2017.

The Reserve Bank of Zimbabwe is on record saying TIB was placed under provisional judicial management within the framework of promoting the balance between the multiple interests of depositors, shareholders, potential investors and other creditors.

TIB was crippled by related party loans whose balances of $19 million accounted for 76 percent of the unsecured loan balance of $25 million as at end of 2014, with no security to recover the balances.

— @okazunga