Amana Capital Limited has secured a strategic investor to be part of its recapitalization plan after the collapse of the Nakumatt commercial paper. The investor is working with shareholders to limit the loss of funds in the collapsed commercial paper.
The company is also seeking legal action against parties related to the Nakumatt commercial paper.
A statement from the company reveals that funds recovered from ongoing legal processes will be credited to affected unit trust holders.
“While the new investor will not provide the finance to repay any funds lost, all monies recovered from ongoing legal processes will be credited to the affected unit trust holders.”
The transaction with the strategic investor will be subject to terms and conditions after the Annual General Meeting (AGM) scheduled for September 25. In the AGM, the Amana Capital will also seek its Unit Holder’s approval for the transaction, as well as give them a platform to voice additional options to reduce losses in the Nakumatt Commercial paper.