adminThe return day is meant to confirm the provisional judicial management order or its extension. If the order is not extended, a judge may order placement of the company into final judicial management or liquidation. The judge has also power to return the company to its shareholders.
Yesterday’s matter could not proceed after Justice Zhou noted that the pagination was not in order. In terms of rule 227 of the High Court rules, all papers filed by the parties should be bound into one document and indexed. And if there are loose papers, the matter cannot be heard.
Provisional judicial manager Mr Wesley Militala has recommended the company be placed into liquidation due to its inability to attract new investors but the majority of shareholders and creditors are pushing for the final judicial management.
The collapsed textile firm was, for the second time, placed under judicial management in December 2010, having gone through the same reconstruction between 2005 and 2008 under Dr Cecil Madondo of Tudor House Consultancy.
Elgate Investment, which acquired a 52 percent shareholding in the firm, applied for a second judicial management after the company plunged into a serious financial crisis.
Judicial management is essentially a process that gives prime consideration to rescuing distressed companies as a going concern through the formulation and implementation of a reconstruction plan.
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