adminBritish businessman Nicholas van Hoogstraten, says he is going to challenge the reconstruction of Hwange Colliery Company Limited (HCCL). Van Hoogstraten holds a 31 percent shareholding in HCCL.In October, Government placed Hwange Colliery Company Limited under reconstruction.
Government has a 42 percent stake in the coal miner and in terms of the Reconstruction of State-Indebted Insolvent Companies Act, the responsible minister has powers to issue a reconstruction order if it appears to him that by reason of fraud or mismanagement, a State-indebted company is unlikely to be able to make any repayment of a credit made to it from public funds.
“We have been advised by our lawyers, and initially we will put in an objection to this reconstruction, which is something new to me. So we need to put in a formal objection . . . that’s in the short term,” said Mr Van Hoogstraten. — Herald Business.
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