Zimbabwe News and Internet Radio

Delays frustrate David Whitehead investor

New David Whitehead (DW) majority shareholder is keen to see legacy issues at the struggling textile giant quickly resolved to pave way for the resuscitation of the company.

David-WhiteheadMr Praduman Kumar Ganeriwal, who acquired 51 percent stake in DW, expressed concern yesterday over the postponement of the meetings for creditors and shareholders that were scheduled for today and tomorrow respectively, saying such meetings were key to take the revival of the firm.

In a statement on Tuesday, judicial manager Mr Knowledge Hofisi said he had rescheduled the meetings to July 15 and 16, due to “circumstances beyond our control.”

Mr Hofisi is expected to present audited financial accounts and introduce the new shareholder to existing members and creditors.

“As an investor, I have put in money and I would like to proceed as soon as possible with the scheme of arrangement after getting audited financials,” Mr Ganeriwal told The Herald.

“(Legacy issues at) DW have been pending for than a decade and it is in the interest of everyone to take it to a stage of closure and work towards revival of the company.

“While we were all looking forward to the meetings this week, I sadly learnt that the meetings have been postponed and (that they) will be convened in two weeks.”

Mr Hofisi said it was regrettable that the meetings had to be moved to later dates because “some crucial issues (pertaining the meeting) have not yet been concluded.”

Formerly owned by Lonrho PLC before a management buyout in 2001, led by former CEO Edwin Chimanye, DW has three factories in Chegutu, Kadoma and Gweru.

The company used to produce about 20 million metres of fabric per year while directly employing 3 000 workers and thousands in down and upstream industries. The Herald