Hwange Colliery row deepens

Published: 16 December 2018
Hwange Colliery Company Limited (HCCL) scheme of arrangement chairperson has challenged the Justice ministry's move to place the coal mining company under reconstruction.

Chairperson Andrew Lawson has challenged the placement of the colliery company under reconstruction, saying a creditors meeting will soon be convened to map a way forward in the mutual interests of HCCL and its creditors.

The Justice ministry gazetted an order, effective October 30, placing the company under reconstruction in terms of section 4 of the Reconstruction of State-Indebted Insolvent Companies Act.  

Hwange, in which Zimbabwe's government is the biggest shareholder with 37 percent shares, is the nation's second largest coal producer and supplies coke to power utility Zesa Holdings.

The reconstruction order appointed Bekithemba Moyo, co-founder and director of DBF Capital partners, to be the administrator of the company, together with two assistant administrators under his control and direction - Mutsa Mollie Jean Remba, the current managing partner of Harare-based law firm Dube, Manikai & Hwacha, and Munashe Shava, a chief operating officer and project leader at Great Dyke Investments, Harare.

The reconstruction order suspends the board of directors of the Zimbabwe Stock Exchange-listed miner, which also trades its shares on the London and Johannesburg stock exchanges.

The minister has also given notice that he will apply to the High Court for confirmation of the order, a move that is now being challenged by Lawson.  

"On the strength of the original court order sanctioning the Scheme and in order to protect creditors' interests and in my capacity as the Trustee of the scheme, I have filed an opposition to the minister's application.

"While the legal process in connection with the reconstruction is ongoing, I shall soon convene a creditors meeting to map the way forward in the mutual interests of both the Company and its creditors," Lawson said.

Last year, the High Court sanctioned a scheme of arrangement between HCCL and its creditors in terms of section 191 (2) of the Companies Act.

The Justice minister then placed the company under administration in terms of the Reconstruction of State-Indebted and Insolvent Companies Act.
- dailynews
Tags: Hwange,


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