A row has erupted between David Whitehead Textiles’ shareholders, creditors and the company’s Judicial Manager with the parties failing to agree on whether the company should be liquidated or continue under judicial management.
According to minutes of a meeting which was held to consider views from the shareholders, creditors and the Judicial Manager, there was no consensus on the way forward as parties disagreed on whether the company must be liquidated or continue to be under judicial management.
Half of the creditors are reported to have called for the liquidation of the company, while the other half wanted the company to continue to be under judicial management.
However, all shareholders were opposed to liquidation of the company and argued that the company should continue to be under judicial management.
The report by the current provisional Judicial Manager Winsley Militala recommended that the company be put under liquidation, as there are no prospects that it will be resuscitated.
The report also revealed that the company has out-dated machinery making it difficult to compete with other international companies. Meanwhile, the High Court judge is this month expected to make a determination on the way forward after considering submissions from all the parties.
David Whitehead Textiles has been under provisional judicial management for more than two years and the company has been facing serious challenges that have resulted in some stakeholders opting for its liquidation. ZBC News
