|
|
 |
|
Privatisations |
|
|
Two complex privatisation for Malawi’s Privatisation Commission
(domestic funding)
• An absolutely insolvent but modern design wood products and forest
extraction manufacturing company with a technical partner minority
foreign shareholder in compulsory liquidation, senior debt owed to IFC
and major subordinated debt. Receivership was avoided and an ICB sale
of a hive down corporation as a going concern with an increased forest
management role was achieved for major Foreign Direct Investment. The
labour force, export activities and environmental enhancements have
all increased substantially since handover in 1999.
• An absolutely insolvent and seriously run-down integrated cotton and
polyester textile plant operating at under 3 percent of rated
capacity: assets and goodwill were successfully sold to an
India/Malawi joint venture in 2003 with a commitment of $12 million
purchase, rehabilitation and expansion expenditure, again following
ICB procedures, with handover in 2003. A management sit-in supported
by court order and receivership imposed by a senior lender were both
overcome successfully. The key was “selling” a unique combination of
import and quota-free rights to OECD countries and South Africa.
Belmont handled technical issues.
|
|
|
| |
|
|
POSTAL ADDRESS:
P.O. BOX 1064 Blantyre
Malawi
Central Africa
| |
