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Business Reporter
McDowells International (Pvt) Limited’s provisional liquidator Winsley Militala is pushing for the company’s final liquidation as it has no prospects of becoming a successful concern after losing its money lending licence to the Reserve Bank of Zimbabwe.The company is currently under provisional liquidation after its money lending licence was cancelled by the RBZ in 2012 for unlawfully taking deposits from the public.
Using the deposits, McDowells had acquired properties in Masvingo, Bulawayo and South Africa.
It was established the firm owed creditors in excess of $14 million after its closure and its subsequent placement under provisional judicial management by the High Court in 2013.
Subsequent meetings with creditors agreed that the firm be liquidated, a decision which was granted by the High Court in 2015 but some shareholders approached the Supreme Court to block the move arguing its operations could still be salvaged.
But the firm’s provisional liquidator, Mr Militala said the only viable route for the MFI was to be liquidated.
“It is evident that the company has no prospects of becoming a successful concern because it is no longer licensed to carry on the business of money lending. Without an operating license, the company cannot trade and it cannot pay back the depositors funds,” said Mr Militala.
“The only way that depositors / creditors can get any money is if the company is liquidated and all immovable properties are sold so that proceeds are distributed amongst creditors in accordance with insolvency laws.”
An application by the shareholders blocking the winding up of operations through disposals of its assets is still pending at the Supreme Court.
Besides blocking the liquidation, the shareholders are also targeting to have Militala removed as the provisional liquidator arguing they did not know who appointed him to charge of the process.
Mr Militala dismissed the accusation as “spurious.
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