By Dipo Olowookere
One of the companies involved in the cocoa processing business in Nigeria, FTN Cocoa Processors Plc, is making efforts to avoid a total collapse.
For years, the company has been struggling to meet up with its financial obligations, while shareholders have not received reward for their investment.
Business Post confirmed from the firm that it was undergoing a serious financial crisis that is even threatening to bring the company down to its knees.
Almost half of the company’s employees have resigned as a result of its failure to pay their salaries, while its head office had been taken over by bank.
In an update to shareholders yesterday, FTN Cocoa Processors said it had not been able to hold its Annual General Meeting (AGM) for over two years and pay dividend to shareholders because of liquidity squeeze.
The firm said in fact, one of its foreign partners, Transmar Commodity USA also had had financial problems and went into liquidation, FTN Cocoa Processors to virtually close its operations over two years ago.
FTN Cocoa Processors, which presently operates from a rented apartment, while appreciating its shareholders for their support, expressed optimism that it would soon get out of the woods.
“The management of FTN Cocoa has been scouting for funds to save the company from total collapse.
“The company is glad to notify its stakeholders that some level of progress is being recorded in respect of the expected funding and there is hope that the company will soon come out of the financial problem.
“The company will keep its investors and other stakeholders posted on future developments. The company is hopeful of holding its outstanding Annual General Meetings during the current year,” the statement from the firm said.
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