via Zimasco still pursues judicial management | The Herald February 10, 2016
Tinashe Makichi Business Reporter
Zimbabwe’s largest ferrochrome producer Zimasco is still pursuing judicial management amid reports that some of the creditors had started attaching the company assets in a bid to recover debts.
Zimasco’s debt currently stands above $65 million from $38 million in 2009.
An earlier application for judicial management had been dismissed on technicalities surrounding certain provisions of the Companies Act.
According to court papers the ferrochrome producer filed the application unprocedurally and as a result breached some provisions of the Companies Act. This invalidated the application.
However, Zimasco general manager (Administration) Clara Sadomba told The Herald Business that the company is still pursuing judicial management.
“The matter is still before the courts because that dismissal as earlier reported was a matter of a technicality.”
She, however, refuted claims
that some of the company’s assets were attached following the dismissal of the application by the High Court.
“The speculation that the
dismissal of the application led to the attachment of the company’s assets by the creditors is not correct .
“Obviously they may have been people who had final demands. It is still work in progress,” said Ms Sadomba.
Zimasco approached the High Court seeking to be placed under judicial management and under the application the company identified Mr Reggie Saruchera as the judicial manager.
The company’s management is of the view that if placed under judicial management Zimasco will be able to properly pay its debts and turnaround its fortunes.
Zimasco operates a ferrochrome refinery in Kwekwe as well as mines along the Great Dyke range stretching from Lalapanzi and Shurugwi in the south to Mutorashanga in the north.