New sign of hope for Tetrad Investment Bank Depositors

New sign of hope for Tetrad Investment Bank Depositors

The Deposit Protection Corporation (DPC) has published a notice calling upon creditors and depositors of Tetrad Investment Bank to visit the bank’s offices to complete payout instructions.

Payout instructions will be completed from today Monday 23 October 2017 to Friday 10 November 2017.

The bank has been under provisional judicial management since July 2015, following its suspension by the Reserve Bank of Zimbabwe (RBZ) from taking deposits and issuing loans, in November 2014.

The DPC was set up by the government with the view of protecting depositors against loss of their insured deposits placed with member institutions licensed to operate banking or finance business.

DPC also announced that payments to creditors and depositors shall be made in terms of the Scheme of Arrangement that was approved by the creditors of the Bank on the 6th April 2017 and 7th April 2017.

TIB owes depositors and creditors a combined $67 372 926. Earlier this year members and creditors agreed to a scheme of arrangement involving a partial cash payment and conversion of debt to equity.

According to the scheme, depositors and creditors will get a cash payment of $1 000 or any such amount if the balance is below that and additional cash of $0,50 in a dollar for the portion of creditor balance in the range of $1 001 to $10 000.

The other $0,50 in a dollar for the portion between $1 001 and $10 000 shall be written off to the reserves of the bank.

The balance after cash payments to creditors and write off shall be converted into ordinary shares at a par value of $0,01 and a premium of $0,09 per share. A total of 551 020 244 new shares will be issued, while old shares to existing shareholders will be cancelled.

The cash payment has a budget of $4,1 million made up of internal cash resources ($3 million) and $1,12 million from the Deposit Protection Corporation (DPC). Tetrad will repay the money advanced by DPC over a three-year period.

“Each Creditor and/or Depositor of Tetrad Investment Bank is hereby advised to visit the Bank’s Offices situated at Harare, 51 The Chase, Mt Pleasant or Bulawayo, to complete payout instructions in respect of payments  that shall be made to you in terms of the Scheme of Arrangement that was approved by the creditors of the Bank on the 6th April 2017 and 7th April 2017,” DPC said in a public notice.

Meanwhile DPC also announced that “compensation (up to the maximum cover limit) to depositors of the following closed banks is still in progress: Afrasia (Kingdom) Bank, Allied Bank, Trust Bank, Interfin Bank & Royal Bank.”

To submit a claim form, you can contact the DPC or visit any ZIMPOST branch across the country.

About Tetrad Investment Bank

It is a merchant bank registered in terms of the Banking Act (Chapter 24:20) and incorporated on 12 June 1995 under the Companies Act (Chapter 24:03), Company Registration Number 3994/95) it is currently under provisional judicial management

Who is Deposit Protection Corporation (DPC)?
DPC is an independent statutory body established by the government of Zimbabwe in terms of the DPC Act (Chapter 24:29) to administer the deposit protection scheme in Zimbabwe

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