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ONE of the ailing companies in Bulawayo, Universal Component Manufacturers, will later this month hold a meeting with its creditors to discuss proof of claims and nomination of the final judicial manager or liquidator. The firm, which at the moment is under provisional judicial management, said in a notice that the meeting slated for 13 November would also involve contributories.
The meeting will also consider the provisional judicial manager’s report and pass a resolution at the meeting to be held at the Master of High Court in Bulawayo.
“Notice is hereby given that a meeting of creditors and/or contributories will be held in the liquidations . . . on the dates and at the times and places for the purposes set forth,” reads the notice.
Bulawayo, once industrial hub of Zimbabwe, has in recent years suffered the worst de-industrialisation compared to other parts of the country due to liquidity constraints that continue to weigh down economic recovery.
Other fundamentals that have worsened the situation facing Bulawayo companies include obsolete equipment and power challenges.
Operational constraints facing the firms continue to mount as some of the struggling companies are being sued over unpaid loans by local financial institutions.
Economic analysts have called for urgent Government intervention to break the impasse over loans between the companies and financial institutions.
In 2011, the inclusive Government set aside $40 million under the Distressed Industries and Marginalised Areas Fund (Dimaf) with Bulawayo being made the first priority in terms of industrial revival.
However, due to political bickering by parties in the inclusive Government, Bulawayo firms have not benefited “meaningfully” from the facility as most of the companies did not secure the resuscitation package.
As a result, some of the firms have been compelled to borrow expensive funding from local financial institutions.
Early this year, the High Court revealed that about 20 firms in Bulawayo had been placed under judicial management since 2010 while another 10 were in liquidation.
Textile giant National Blankets, Tabs-Avon Lighting, Asmara, Belmont Leather, Textile Mills, Security Mills, and Archer Clothing are some of the companies presently under judicial management.
Online Reporter