Zimasco still pursuing judicial management

via Zimasco still pursuing judicial management – NewsDay Zimbabwe March 3, 2016

TROUBLED chrome-smelting company, Zimasco is still determined to be placed under judicial management despite efforts by its stakeholders and creditors to block the move.


In a letter, Zimasco chairman and chief executive officer, Li Jinqian said the application for placement under judicial management was still on course despite reports that the application had failed.

“Media reports in recent days have created the impression that Zimasco’s application for judicial management has failed.

However, this is not the case, as our application remains before the courts and is still work in progress,” he wrote.

The company, which is reeling under massive debts of over $65 million, said once placed under judicial management, it would start engaging its creditors, the majority of them small-scale businesses, in an effort to settle the dues.

“This application, once granted, seeks to assist the company to manage its liabilities with all stakeholders in an equitable and orderly manner with the help of a court-appointed judicial manager.

“This process is expected to occur in conjunction with various initiatives that the organisation has embarked on to turn around the company and return it to viability as soon as possible,” Jinqian said.

In an update to some of its creditors as the company attempts to fend off lawsuits and possible attachment of property over the massive debts, Jinqian said by the end of March, Zimasco would have come up with a debt repayment strategy.

“At this time, the Zimasco management team, in conjunction with our shareholders, is working on a strategic plan, which should be firmed up by the end of March 2016. It is, therefore, our intention to engage with you, thereafter, and advise details of how we intend to service your debt,” the letter reads.

Major creditors include workers and banks, who are owed $38 million collectively.