Kalamazoo placed under judicial management

Munyaka of M & M Forensic Auditors and Tax Specialists appointed the judicial manager.

In its application to the High Court, Kalamazoo, once a thriving printing company in theyears before the adoption of the multi-currency system, said the company was in serious financial problems due to undercapitalisation. As such, it was failing to meet its debts and was also facing execution of its assets by some creditors.

In addition, the company is embroiled in several litigations with some creditors. The company also owes workers a substantial amount in unpaid wages and salaries.

It argued that placing the printing company under the provisional judicial management would allow it to restructure its management, turn around and save jobs.
Read part of the application: “The financial problems are only temporary and if the company is placed under judicial management, it will surmount its difficulties.

“The applicant (Kalamazoo) has not ceased production and continues to generate new business with a view of creating a reasonable inflow of money into the company.

“It is just equitable that the applicant company be placed under provisional judicial management as the welfare of its workers and dependants will be guaranteed. Further, it will redirect focus on growth of business instead of battle at survival against each creditor.”

The company argued that the provisional judicial management would benefit the creditors as the company’s reconstruction would ensure their payments in full as opposed to “insignificant” dividend from the company’s sale of its assets if the company is liquidated.