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Prince Sunduzani, Business Reporter
BULAWAYO-BASED beverages company, Watering Hole, which is under judicial management, is on a recovery path that will see it being able to settle its debts and contribute to the economy.

The company which was on the verge of closing down after it failed to pay creditors about $500 000 was placed under voluntary judicial management in March last year.

Watering Hole judicial manager Mr Khumbulani Mathema said the company’s turnaround efforts were bearing fruit after securing an investment deal with an undisclosed investor, a move that will enable the troubled entity to service its debts.

“The company ran into some financial problems last year and was on the verge of collapse. It owed a number of creditors and ended up opting for voluntary judicial management.

“At the moment, the beverages manufacturer is on a recovery path and is doing well after securing an investor.

“We are projecting that the firm will soon move out of judicial management and be able to get back on its feet,” he said.

Mr Mathema said Watering Hole was ready to contribute to the country’s economy through employment creation and meeting its financial obligations to creditors.

In the next six months, the beverages maker expects to re-open two of its branches in Bulawayo that were closed down.

It also plans to diversify operations venturing into leather products manufacturing.

The company’s judicial manager noted that the new political administration has opened up opportunities for business growth across different sectors of the economy through increased restoration of investor confidence in Zimbabwe.

“We are back on our feet and we now want to trade and be able to contribute to the growth of the economy. The new Government has brought in renewed hope and confidence in Zimbabwe and investors are now coming in.

“In the next few months, we envisage to do a debt to equity swap which will allow the business to clear everybody that it owes then come out of judicial management.

“This is one of the few success stories when it comes to judicial management as the company is emerging from the woods.”

“The company will be able to create more jobs and continue to add value to the economy. Going forward plans are afoot to also open another shop in the high density suburb of Nketa,” said Mr Mathema.

@PrinceNkosy102