HARARE – Kwekwe-based ferrochrome producer, the Zimbabwe Mining and Smelting Company (Zimasco) has emerged out of judicial management.
Judicial manager Reggie Saruchera said in a statement today that the company’s reformation had been successfully completed, with the company’s performance last year having received a ‘seal of approval’ from its majority shareholders.
“The re-structuring and re-organisation of Zimasco has been successfully completed and the High Court of Zimbabwe has approved the removal of Zimasco from Judicial Management with effect from the 7th of February 2018. The board and management of Zimasco will assume full management control over the affairs of Zimasco and will be guided by the provisions of the Scheme of Arrangement, in addition to the Memorandum and Articles of Association,” said Mr Saruchera.
“Following Zimasco’s good performance in 2017, we are pleased to report that Zimasco (Pvt) Limited was awarded an Excellence Performance Certificate by its majority shareholder, Sinosteel Corporation at its annual general meeting held in China last week.”
The company was placed under the judicial management in 2016 after failing to service its debts that had ballooned to over $65 million in 2015 from about $38 million in 2009.
Zimasco is indebted to different creditors including banks and retrenched workers to the tune of about $130 million. The Scheme of Arrangement will see the company paying our creditors on a time frame ranging between four and five years.
To date, Zimasco has paid circa $33 million to various creditors.
In 2017, the miner produced 350 000 tonnes of chrome ore and smelted 100 000 tonnes.