EMBATTLED miner, RioZim has once again been arraigned before the courts for placement under Corporate Rescue by a shareholder who believes the entity is on dire straits.
The miner is facing critical crisis characterized by severe liquidity shortages, mounting losses and operational failures, including the cancellation of its Sengwa coal license and 5-month unpaid wages for workers.
The entity is saddled with a US$76, 5 million debt which includes a US$5,5 million and ZWG 8,9 million in unpaid taxes. Outstanding salary liabilities have increased to US$5.6 million.
A shareholder, Tendai Rwodzi has filed an application seeking the placement of the company under Corporate Rescue.
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In a cautionary statement, RioZim vowed to fight the court application arguing that it does not warrant the courts green light.
"The allegations by Tendai Rwodzi are that the Company is in financial distress, is suffering from liquidity constraints to such an extent that it would fail to pay any debts that fell due within the next six months and that there is potential for the Company to become insolvent during that period.
"These are bare and unsubstantiated allegations and the Company will defend the Application by filing the necessary opposing papers within the following days," the company said.
The applicant in the matter is Tendai Rwodzi, a holder of (1,500) ordinary shares of the Company consisting of Zero Point Zero Zero One Two Percent (0.0012%) of the issued and paid up share capital of the Company.
RioZim directors and management reiterated that they remain committed to unlocking value for the shareholders and to cleaning up the balance sheet of RioZim Limited and attracting new capital for enhanced mining operations.
"Shareholders and the investing public are advised to exercise caution when dealing in the Company's securities. Further announcements will be made in accordance with regulatory requirements as and when there are material developments," added RioZim.
