HomeBusiness DigestValley put under provisional liquidation

Valley put under provisional liquidation

Struggling telecoms company Valley Technologies has been put under provisional liquidation following a High Court application by one of its creditors, DHL International Zimbabwe (DHLIZ).

Staff Writer

According to the applicant’s founding affidavit, Valley owed DHLIZ the sum of US$41 464 in respect of services provided to the telecoms player, broken down as US$38 000 being the balance of capital debt, US$2 664 in interest, US$800 in respect of legal costs for the application according to a September 2012 High Court judgment debt.

Valley is said to have failed to pay the judgment debt despite several demands made by DHLIZ including attempts to attach some of the telecoms company’s assets.

Deputy sheriff’s remarks dated December 13 2012 show that execution to attach assets failed as Valley no longer had assets at its given address after all its goods had been attached and removed over other High Court cases.

“In the circumstances, it is respectfully submitted that the respondent committed an act of insolvency as envisaged by 11(f) of the Insolvency Act, and that the respondent is liable to be wound-up by the court on the basis that it is unable to pay its debts as envisaged by Section 206(f) of the Companies Act,” reads part of the court papers.

“In all the circumstance, the applicant respectfully submits that it is the best interest of all creditors that this application be granted and that a provisional liquidator be appointed.”
Winsley Militala was appointed as provisional liquidator pending granting of a full order.

The liquidation will add to Valley’s woes after the Postal and Telecommunications Regulatory Authority of Zimbabwe (Potraz) mid-July cancelled the mobile company’s operating licence for failure to fulfil the regulator’s conditions, spectrum and number fees, among other issues.

In a June 17 letter to Valley CEO Zachary Wazara, Potraz said the company’s failure to pay licence, spectrum and number fees was a material breach of the licence condition.

At the time, Valley was said to be owing Potraz US$2,4 million.
“You were issued with several reminders and final notices of demand for payment of licence and spectrum fees from 2010 to date.

You were also afforded several opportunities to explain your position verbally. Despite these notices and meetings, you still failed to liquidate your debt and meet current licence and spectrum obligations to the authority,” Potraz said in the letter to Wazara.

Valley was last year taken over by AfrAsia Kingdom Bank through a debt-to-equity swap for 80% of the telecoms company through the bank’s special purpose vehicle — Lalela Trading — after the mobile network operator failed to settle its obligations to the bank.

Legally, Lalela are the new owners of the business.

After signing the deal, Lalela appointed Nigel Chanakira, Happymore Mapara, Maureen Gula-Ndebele, Sobusa Gula-Ndebele and Simplisius Chihambakwe as directors of Valley.

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