Online ReporterHerald Reporter
Fossil Mines, the majority shareholder of Khayah Cement Zimbabwe, has been pushed out of the company following a creditors meeting held yesterday.
The move marks a crucial step towards resuscitating the struggling cement manufacturer, which has been grappling with financial challenges since being slapped with restrictive measures by the United States.
Mr Bulisa Mbano of Grant Thornton (Zimbabwe) Chartered Accountants has been appointed as the corporate rescue practitioner after the company adopted a resolution on December 20 to begin a corporate rescue procedure under the Insolvency Act.
The creditors meeting, which was attended by many creditors and investors, approved a roadmap tabled by the company’s corporate rescue practitioner, Mr Mbano.
“The meeting went on well and it is our hope that the resolutions for the rescue plan will be implemented in accordance with our timelines for the benefit of investors and creditors,” Mr Mbano told The Herald.
Mr Mbano also revealed the importance of engagements with creditors in facilitating the revival of the company.
“It is our hope that what we have managed to gather today will set the tone towards the revival of the entity. Of course, there are challenges, but engagements are key in finding each other and getting to the real issues for the revival of the entity,” he noted.
The meeting also marked the beginning of a journey towards finding solutions to safeguarding gains on cement availability and self-reliance for the commodity in Zimbabwe.
Fossil Mines had acquired a 76,45 percent stake in Lafarge Cement Zimbabwe Limited, now rebranded as Khayah Cement, in 2022.
However, the company’s fortunes took a turn for the worse when the US designated companies and individuals linked to Fossil, were put under restrictive measures.
Due to the devastating effects of the unlawful economic sanctions that have negatively affected its operations, Khayah Cement Limited has entered corporate rescue proceedings.
The resolution was filed with the Master of the High Court and the Registrar of Companies to start a critical step in the company’s efforts to navigate its financial difficulties.
Khayah Cement, one of the local companies under illegal sanctions, has had to go through their operations under the weight of the illegal economic embargoes.
The company said, “creditors and other stakeholders would be notified of further processes by the corporate rescue practitioner.”
Mr Mbano’s role will be crucial in guiding the company through this challenging period and ensuring that creditors and stakeholders are kept informed of all developments.
The Western-imposed economic sanctions have created an untenable business environment for Khayah Cement, which is vital for the local construction industry.
The inability to access necessary resources has not only affected the company’s production capabilities but had also had a ripple effect on employment and related sectors.
