Zimasco weaned off judicial management

By Munyaradzi Musiiwa Midlands Bureau

Kwekwe-based chrome smelting company Zimbabwe Mining and Smelting Company (Zimasco) will at month end be weaned off judicial management after almost two years under Grant Thornton International.

Zimasco creditors agreed on a “scheme of arrangement” last month after the giant ferrochrome producer made a turnover of more than $158 million in 16 months.

A scheme of arrangement is a court-approved agreement between a company and its shareholders or creditors.

It may affect mergers and amalgamations and alter shareholder or creditor rights.

In an interview, Zimasco judicial manager Mr Reggie Saruchera of Grant Thornton International, said the ferrochrome producer would be weaned of judicial management on January 31.

Zimasco last month invited creditors to deliberate on the scheme of arrangement which was then passed unanimously.

The scheme is expected to reschedule the debt and free up space for capital and recurrent expenditure.

“We recently had a meeting with Zimasco creditors to discuss the scheme of arrangement. They voted in favour of it. The company will be standing alone by January 31 this year and will no longer be under judicial management,” he said.

Mr Saruchera said Zimasco had posted a profit of more than $45 million over a period of 16 months.

Since the beginning of last year, Zimasco has contributed more than $103 million of the country’s total chrome proceeds.

“We are happy to announce that we have managed to turn around Zimasco during the first 16 months of judicial management. Zimasco has made a turnover of more than $158 million and a profit of more than $45 million,” said Mr Saruchera.

Zimasco, which is rising from a debt overhang that had buried the group for years, has started making efforts towards liquidating debt owed to various creditors.

Zimaso owed a total of $144 936 691 to creditors including $21 780 307 to Sinosteel Singapore (in liquidation), $11 350 142 to Sinosteel International and $3 309 850 to the National Social Security Authority, pension funds and NECs.

Zimasco owes $34 738 364 to financial institutions, $7 295 513 in retrenchment packages, and $2 787 316 towards salaries and wage arrears (three months). The Herald