Redwing Mine remains under the judicially-approved resolution plan for revival until it is able to operate normally, the High Court has ruled, quashing the company’s bid to have it removed from the corporate rescue plan.
In a judgment delivered last Wednesday, Justice Joseph Mafusire also removed Mr Cecil Madondo, who was appointed by the High Court as the corporate rescue practitioner for the mine but who is under arrest facing criminal charges.
Mr Knowledge Hofisi is now in charge.
Redwing Mine was placed under corporate rescue in terms of the Insolvency Act at the instance of its workforce, represented by their trade union.
King’s Daughter Mine is the parent company of RM.
King’s Daughter approached the High Court seeking the removal of Redwing from the rescue plan, arguing that it was no longer depressed because the debts that have been weighing it down have since been paid off, and with guaranteed financial support from the parent company, Redwing was now able to operate normally, as a going concern.
King’s Daughter also wanted Mr Cecil Madondo, who was appointed by the High Court, removed.
But King’s Daughter could not prove Redwing was out of its parlous financial state and so Justice Mafusire found no cogent evidence that the position at Redwing had changed significantly.
He said corporate rescue proceedings were of short duration in terms of the Insolvency Act since just three months is given in terms of the Act and beyond that the leave of the court is required.
Corporate rescue ends when among other things, the court sets aside the order of corporate rescue.
But the judge, however, granted the order for the removal of Madondo, who has since been replaced and threw out his application for extension of time from three to nine months to publish the corporate rescue plan for RM.
Redwing was saddled with debts and for some time it was operating at below capacity. Among other things, its workers went unpaid for years. They took to the law and applied for its corporate rescue through the trade union.
Redwing opposed the application. But in spite of such opposition, the application was granted. Since then the parties have been fighting in courts.