EMBATTLED banker and former Africa First ReNaissance Corporation Limited (Afre) executive chairman, Patterson Timba, is set to lose prime land in Philadelphia, Harare after he was placed under sequestration by the High Court of Zimbabwe.
Pursuant to this, creditors have passed a resolution before the Master of High Court, authorizing the liquidator Cecil Madondo, to sell the undivided half share owned by Timba at Lot 2, Brooke Estate, Philadelphia, Harare.
The piece of land measures 1, 6480 hectares. Sequestration is the surrender of an individual’s estate to the High Court under the governance of the Insolvent Act.
This happens when one realises that his or her debt has become too big and unmanageable and declares himself insolvent or bankrupt. The liabilities in this case exceed his assets.
Sequestration order can be granted on either the debtor’s request, which is known as voluntary surrender of estate, or through one of a person’s creditors, known as compulsory sequestration.
It is not the first time Timba, has lost assets in recent years.
He lost control of Afre Corporation when it was taken over by NSSA in 2012 and rebranded to First Mutual Holdings Limited (FMHL), which also controlled ReNaissance Merchant Bank, which was later rebranded Capital Bank, before its closure due to lack of capital.
Madondo said Priscilla Timba, a joint owner of the Philadelphia property, has been given the opportunity to buy the shares of the insolvent estate within the next 20 days. The market value of the half share is ZWL$7.02m.
In the event that she fails to pay the purchase price within the stipulated time frame, the liquidator will sell the half share in the immovable property by private treaty or public auction.
“Priscilla Timba, who is the joint owner of the property with Insolvent Estate Patterson Fungayi Timba is hereby given the opportunity to buy the half share of the Insolvent Estate of Patterson Timba within 20 days from the date of this notice,’ Madondo said in a notice.
“The purchase price must be paid to the liquidator within the same period. In the event that Priscilla (Timba) does not pay the purchase price within the stated time frame, the liquidator shall cause the sale of the half share in the immovable property by private treaty or public auction.”
The purpose of a sequestration order is to liquidate an insolvent‘s assets and to according to ranking of creditors, divide the revenue from the sale of assets pro rata among creditors, as determined by the Insolvency Act.