Vumbachikwe Mine faces corporate rescue

Source: Vumbachikwe Mine faces corporate rescue -Newsday Zimbabwe

SOME Vumbachikwe Mine creditors are advocating that the company be placed under corporate rescue, claiming the firm was heading towards insolvency, NewsDay Business can reveal.

Vumbachikwe Mine, situated in Gwanda and owned by Duration Gold, reportedly owes various creditors, including workers, the Zimbabwe Revenue Authority and Zesa Holdings more than US$10 million.

 

 

Priscillar Gustavo of Masamvu and DaSilva-Law Chambers, who is representing Fawcett Security Operations, said they have initiated the process of placing Vumbachikwe Mine under corporate rescue.

“The application (is) in terms of the Insolvent Act 2018 which replaced the judiciary management and introduced the corporate rescue was served to the company on April 25, that a corporate rescuer be appointed to save the company,” she said.

NewsDay Business is in possession of the court application filled at the High Court on April 25.

In its founding affidavit, Fawcett said it has provided private security services on contract to Vumbachikwe over the past approximately 10 years.

 

 

“Since about 2022 the 1st respondent has had challenges paying for the security services rendered by applicant at its Vubachikwe Mine as and when such payments fell due,” the affidavit reads in part.

“By a letter dated April 20, 2023 the 1st respondent acknowledgement its indebtedness to the applicant in the sum of US$170 000 being the amount due and owing as at that date in respect of private security services rendered by the applicant for the period from 2022 to 2023 at Vubachikwe Mine.”

Vumbachikwe has not been operating since November 2022 after workers downed tools over outstanding salaries and poor working conditions, among other issues.

 

 

Sources told NewsDay Business that the case would be heard in court tomorrow (Friday).

Reached for comment Vumbachikwe Mine spokesperson Robert Mukondiwa said: “I cannot comment on something that I have not seen because that would be speculation. I need to see it and consult our legal team because what you are talking about is a legal document.”

Duration also runs Gaika Mine, Athens Mine and Royal Family

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