HWANGE Colliery Company Ltd is still owing its employees and creditors in excess of US$4,6 million and is now two months behind an agreed scheme arrangement.
The firm’s scheme of arrangement was sanctioned by the High Court in May 2017 following approval by the majority of HCCL’s creditors in April the same year.
As part of the contractual provisions of the scheme of arrangement, HCCL has to ensure partial monthly disbursement of outstanding wages to its employee creditors.
The firm has been paying its workforce 50% of their salaries since the beginning of last year and in June the company paid 7% of the employees’ 36 months outstanding dues.
Hwange Colliery Company Scheme chairperson Andy Lawson said while this is disturbing, the company assures its creditors that this is a temporary setback which is resolvable.
“The company has fallen behind by two months in the payments (US$4,6 million) due to employee creditors under the Company’s creditor’s scheme of arrangement. While this is disturbing the Company assures its creditors that this is a temporary setback which is resolvable,” he said.
The Company has fallen behind on the payment of interest (US$3 million) on Class A debentures that should have commenced on the anniversary of sanctioning of the scheme by the High Court on May 10 2017.
A total 169 520 tonnes were sold in August from 215 564 tonnes.
Of the 215 564 tonnes produced, 34 579 tonnes was from underground mine operations.
The company has accumulated a coal stockpile of about 345 000 tonnes valued at US$13 million.
Meanwhile the company suspended the responsible senior management in an effort to deal with unsatisfactory work performance and enforcing a culture of performance.
In the meantime, the company is currently engaging its customers for payments to enable it to meet its short-term obligations.