Kwekwe based ferro-chrome producer Zimasco has been removed from judicial management and will be handed over to its management, the company's judicial manager said yesterday.
Faced with a host of operational challenges and on the verge of closure, Zimasco voluntarily applied to the High Court in 2016 to be placed under judicial management, a process that not only protects, but assists a company to manage its liabilities with the permission and assistance of its creditors in an equitable and orderly manner with the help of a court appointed administrator.
The process also guards against a defaulting company being sued by its creditors and having its properties sold until it resolves its debt situation. At the time, Zimasco had debts amounting to over $140 million.
Reggie Saruchera of Grant Thornton, famed for ability to turnaround struggling companies, was appointed the judicial manager two years ago and oversaw its restructuring and return to profitability.
Last year, the company recorded a turnover of around $158 million and a profit of more than $45 million, and employed about 700 workers. In a statement, Grant Thornton said Zimasco was effective February 7, 2018 out of judicial management.
"We are pleased to announce that the re-structuring and re-organisation of Zimasco has been successfully completed and the High Court of Zimbabwe has approved the removal of Zimasco from judicial management with effect from the 7th of February 2018. The company has been nursed back to financial health within 20 months under our care and management," it said.
Following the removal, the board and management of the ferro-chrome producer has assumed full control of the affairs of the company.
A High Court approved scheme saw Zimasco creditors and owners agreeing on a way forward towards returning the ferro-chrome producer to financial health. The scheme saw Chinese firm, Sinosteel Corporation, emerging as the biggest shareholder in Zimasco.
- New Ziana.