News / National
Broke medical aid society offers graves to offset debts
06 Sep 2016 at 07:18hrs | Views
GALAXY Medical Aid Society, a company in liquidation, has offered graves at some cemeteries to its creditors in its battle to clear its debts with service providers.
The firm was placed under provisional liquidation in December 2014 after being confirmed to be insolvent.
Galaxy was incorporated in Zimbabwe in terms of the Medical Aid Services Act with the core business of providing medical aid services to the public.
Liquidator Dr Wesley Sibanda of Welsa International Chartered Accountants, reported to the Master of High Court that the company was now insolvent with total liabilities amounting to $1 578 478.
Total value of assets stood at $1 201 398 as at December 2013.
Net liabilities were amounted to $377 080 at the time the company was placed under provisional liquidation.
In its battle to pay off the debts, the liquidator told a public meeting at the Master of High Court's office that the only available assets for sale were grave units at some cemeteries in Harare.
The creditors who are being offered graves include Life Sciences Laboratories (owed $4 603), The Healthbridge Dental Clinic ($1 757), Lancet Laboratories ($105), Glarctian Missionaries ($3 930,44) and Immuno-Path Diagnostic Laboratory ($2 093).
Efforts by Dr Sibanda to sell the grave units to funeral parlours were proving fruitless and he was now seeking to hear from creditors if they can accept the available assets as a form of payment.
Part of the minutes of a meeting held mid last month reads:
"Dr Sibanda informed creditors present at the meeting that he was given grave units to sell by the trustees.
"He indicated that he is facing challenges in selling the graves. An agent was appointed to sell the grave units but they are selling at a slow pace.
"He further advised the meeting that funeral parlours arc not willing to buy the graves in large quantities," read the minutes.
In the next meeting to be held next week, the parties are expected to discuss the possibility of offering graves to the creditors as a form payment.
Dr Sibanda offered to give grave units to all creditors owed in excess of $600.
"He (Dr Sibanda) offered to pay creditors who are owed amounts above $600 in the form of graves.
"He then suggested that a special meeting be held in early September for creditors to decide on whether they can accept payment in form of graves or otherwise," read the minutes.
The parties are expected to meet on September 14.
Galaxy argued that it got into liquidation after its debtors who owed in excess of $400 000 failed to pay it.
It then ended up failing to pay its own creditors, resulting in the order for winding up being granted at the High Court two years ago.
The firm was placed under provisional liquidation in December 2014 after being confirmed to be insolvent.
Galaxy was incorporated in Zimbabwe in terms of the Medical Aid Services Act with the core business of providing medical aid services to the public.
Liquidator Dr Wesley Sibanda of Welsa International Chartered Accountants, reported to the Master of High Court that the company was now insolvent with total liabilities amounting to $1 578 478.
Total value of assets stood at $1 201 398 as at December 2013.
Net liabilities were amounted to $377 080 at the time the company was placed under provisional liquidation.
In its battle to pay off the debts, the liquidator told a public meeting at the Master of High Court's office that the only available assets for sale were grave units at some cemeteries in Harare.
The creditors who are being offered graves include Life Sciences Laboratories (owed $4 603), The Healthbridge Dental Clinic ($1 757), Lancet Laboratories ($105), Glarctian Missionaries ($3 930,44) and Immuno-Path Diagnostic Laboratory ($2 093).
Efforts by Dr Sibanda to sell the grave units to funeral parlours were proving fruitless and he was now seeking to hear from creditors if they can accept the available assets as a form of payment.
Part of the minutes of a meeting held mid last month reads:
"Dr Sibanda informed creditors present at the meeting that he was given grave units to sell by the trustees.
"He indicated that he is facing challenges in selling the graves. An agent was appointed to sell the grave units but they are selling at a slow pace.
"He further advised the meeting that funeral parlours arc not willing to buy the graves in large quantities," read the minutes.
In the next meeting to be held next week, the parties are expected to discuss the possibility of offering graves to the creditors as a form payment.
Dr Sibanda offered to give grave units to all creditors owed in excess of $600.
"He (Dr Sibanda) offered to pay creditors who are owed amounts above $600 in the form of graves.
"He then suggested that a special meeting be held in early September for creditors to decide on whether they can accept payment in form of graves or otherwise," read the minutes.
The parties are expected to meet on September 14.
Galaxy argued that it got into liquidation after its debtors who owed in excess of $400 000 failed to pay it.
It then ended up failing to pay its own creditors, resulting in the order for winding up being granted at the High Court two years ago.
Source - chronicle
