Emergency medical service firm, Medical Air Rescue Service (Mars), is seeking a new investor to take up a 60% stake, five years after it was placed under judicial management.
BY FIDELITY MHLANGA
Mars, which was part of Spiritage, a group of companies controlled by Zachary Wazara, was placed under voluntary judiciary management in 2013 with liabilities of $7 million against current assets of $2 million.
This week, the judicial manager, Christopher Masawi of Fairvalue Chartered Accountants Zimbabwe, flighted a tender inviting expressions of interest in the firm, saying he believed the company was on a recovery path.
“The business has since responded positively to various interventions implemented,” he said.
“Tenders are hereby invited from interested parties to purchase 60% of the equity in Mars Zimbabwe Private Limited.
“Interested parties are required to register with the judicial manager at Fairvalue Chartered Accountants (Zimbabwe).”
At its peak, Mars carried out 3 000 air evacuations from as far as Angola, the Democratic Republic of Congo, Madagascar and Zambia.
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But the company suffered during the pre-2009 hyperinflation era, and was unable to buy or service its equipment, resulting in loss of business.
When it was placed under judicial management, Wazara blamed the liquidity crunch and the increase in competition from other providers.
“The emergence of competition in the provision of ambulance services has led to health funders shifting the relationship with ambulance services from capitation to fee for service business models,” Wazara said then.
“This has led applicant to lose revenues amounting to 45%.”
