Online Reporter
Business Reporter
RZM Murowa (Private) Ltd, which operates the Murowa diamond mine in Zvishavane, has been placed under voluntary corporate rescue following a resolution by its board of directors.
The move invokes an automatic statutory moratorium under the Insolvency Act, freezing all outstanding third-party litigations, asset attachments and debt executions.
This comes against the backdrop of severe capital constraints, an aging equipment fleet and escalating labour disputes over unpaid wages running into millions of dollars.
“The board resolved to file for the intervention after determining that the company is technically financially distressed and unable to service its immediate obligations, yet retains a highly viable, asset-rich resource base that can be salvaged,” a company official, who requested not to be identified because he is not authorised to talk to the press, told this publication.
Mr Tinashe Rwodzi was appointed the corporate rescue practitioner.
The company’s deep operational and financial crisis has drawn urgent scrutiny from the Ministry of Mines and Mining Development, with Deputy Minister Fred Moyo expressing profound concern over the deteriorating state of affairs at the diamond producer.
