ZimAlloys placed under judicial management

HARARE - Zimbabwe Alloys Limited, (ZimAlloys) has been placed under judicial management and may face liquidation after the ferrochrome producer’s debt rose to alarming levels.

The latest Government Gazette reveals that the High Court placed ZimAlloys under final judicial management on November 27 after it was placed under provisional judicial management on July 24.

Formerly-owned by Anglo American Plc, Zimbabwe Alloys, which was sold to a local consortium for the equivalent of $10 million in 2005, owes several creditors.

“The applicant be, and is hereby placed under provisional judicial management and subject to supervision of this court, shall be under the management of a provisional judicial manager, appointed in terms 299 of the Companies Act,” reads the Government Gazette.

The High Court appointed Reggie Saruchera, a chartered accountant, as the ferrochrome producer’s judicial manager and barred the ZimAlloys board from any involvement with the company.

“The master is hereby directed to appoint Reggie Saruchena of Grant Thornton Camelsa, a suitable, qualified and experienced person as the judicial management of the applicant,” the gazette says.

Saruchera presented a medium term plan for ZimAlloys to the High Court last week that will see it sift through its dump to raise some cash.

He said a South African mineral processing firm, Specialised Metallurgical Projects, would extract some chrome metal from half of Zimbabwe Alloys’ slag dump, which is estimated at four million tonnes.

“We expect to sell two million tonnes over a period of four years,” Saruchera said, adding that this would bring an estimated annual revenue of $2,75 million and operating profit of $2,5 million if successful.

ZimAlloys joins a long list of companies that have gone under.

A recent survey by the National Social Security Authority said 711 companies in Harare went bust in the period July 2011 to July 2013, rendering 8 336 individuals jobless.

This is an addition to more than 90 companies that have closed shop in Bulawayo since 2010, with more than 20 000 workers thrown into the streets.

Comments (1)

BHORA MUGEDHI

hahahahahaha - 18 December 2013

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