Air Zimbabwe (AirZim) board has approached government with a proposal to assume its huge debt overhang accrued from various quasi-government entities, as the struggling state-owned enterprises moves to clean its balance sheet, the business digest has learnt.
AirZim is currently saddled with a debt of US$341 million. Of the debt, 92,2% amounting to US$314 million is local debt, while the foreign debt constitutes 8% at US$ 26,1 million. The entity is struggling to court potential investment partners due to its poor balance sheet, among a myriad of other challenges besetting the airline.
AirZim corporate services manager Tafadzwa Mazonde told businessdigest that while the details are confidential, the set-off will be between the airline and government-related institutions.