daniel chigunweNqobile Bhebhe
Khayah Cement Limited, a prominent cement manufacturer facing operational and financial challenges, will hold its first meeting with creditors and company members on 19 February 2025 as part of its voluntary corporate rescue proceedings.
The corporate rescue path permitted by the Insolvency Act, aims to protect stakeholders’ interests and prevent liquidation.
During the Corporate Rescue proceedings, no legal proceeding, including enforcement action, against the company, or in relation to any property belonging to the company, or lawfully in its possession, may commence or proceeded in any form without the authority of the Corporate Rescue Practitioner.
Bulisa Mbano of Grant Thornton (Zimbabwe) Chartered Accountants was appointed as the corporate rescue practitioner.
The entity went into corporate rescure on 30 December 2024 in terms of the Insolvency Act (Chapter 6:07).
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.
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 in the cement manufacturing giant formerly Lafarge Cement.
In a notice, Mbano said following the Master of High Court’s approval to extend the notice period for notifying affected persons to 31 January 2025, the first meeting of creditors and members of the company will now be held in February in Harare.
“This meeting is for proof of claims, overview of corporate rescue proceedings, statement by the Master of High Court about reasonable prospects of rescuing the company and appointment of committee of creditors.
“If you are owed money by the company for any reason whatsoever, you are required to complete an affidavit for Proof of Claim Form,’ said Mbano.
In a previous update, the company said its challenges were unexpected equipment breakdowns, including the Vertical Cement Mill and the kiln.
The Vertical Cement Mill, an energy-efficient grinder for producing fine powders, and the kiln, critical for manufacturing clinker, suffered major failures.
The kiln, mothballed in 2023, forced the company to adopt a grinding station model, relying on expensive imported clinker to maintain market presence.
Clinker is a primary raw material for cement production, and the shift significantly increased costs.
It further said its troubles were compounded by sanctions imposed on one of its consortium members, which holds a controlling stake.
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 Western – imposed economic sanctions have created an untenable business environment for Khaya 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.
Bongani Ndlovu