CEMENT manufacturer, Khayah Cement Limited (Khayah) has set February 19 as the first meeting of creditors since the firm was placed under corporate rescue.
This comes as the firm’s board voluntarily placed the company under corporate rescue, in accordance with the provisions of the Insolvency Act [Chapter 6:07], effective from December 30, 2024.
Bulisa Mbano of Grant Thornton Zimbabwe was appointed as the firm’s corporate rescue practitioner.
The firm entered corporate rescue as it faced considerable challenges in meeting some of its obligations to creditors as and when they fell due for payment, driven by competing demands for cash.
In a statement yesterday, Mbano said this meeting was for proof of claims made by creditors.
“Following the Master of High Court’s approval to extend the notice period for notifying affected persons to January 31, 2025, the first meeting of creditors and members of the company will now be held on February 19, 2025 at 0900hrs at Chapman Golf Club, 6 Smit Cresent, Harare, Zimbabwe,” he said.
“This meeting is for proof of claims, overview of corporate rescue proceedings, statement by the Master of High Court about reasonable prospects of rescuing the company, and appointment of committee of creditors.”
Mbano said if a person was owed money by the company for any reason whatsoever, they were required to complete an affidavit as a “proof of claim form”.
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“You will be required to complete these forms in duplicate, attach all supporting documents, and lodge them with the Master of the High Court, at the Master’s office. Copies are available for collection from Grant Thornton offices, or electronically upon email request,” Mbano said.
“During the corporate rescue proceedings, no legal proceeding, including enforcement action, against the company, or in relation to any property belonging to the company, or lawfully in its possession, may commence or proceeded in any form without the authority of the corporate rescue practitioner.”
In December, Khayah revealed that prospects of meeting its obligations were hampered by unanticipated and yet major equipment breakdowns on its vertical cement mill and the kiln.
According to the firm, this resulted in a significant loss of production coupled with large amounts of money being spent on repairing these critical pieces of equipment.
Further, trade restrictions from targeted sanctions on one of the members of the consortium that purchased a controlling stake in Khayah resulted in the withdrawal of critical support and service provision by financial institutions, adding financial strain.
Lastly, exchange control volatility and rising costs also weighed heavily on the firm.
