By Staff Writer
BARAK Fund SPC Ltd on Wednesday commenced corporate rescue proceedings of one of the country’s major coal producers, Makomo Resources.
This was revealed in a notice by Barak Fund SPC’s lawyers Titan Law.
“Be pleased to take notice that on the 10th day of November 2021, the applicant Barak Fund SPC Ltd has commenced corporate rescue proceedings in respect of the respondent Makomo Resources (Pvt) Ltd in terms of Section 124(1) of the Insolvency Act (Chapter 6:07),” the notice read.
“The proceedings have been instituted in the High Court sitting in Bulawayo under case number HC 1718/21 on 10th November 2021.”
Corporate rescue refers to proceedings to facilitate the rehabilitation of a company that is financially distressed. The concept was introduced into Zimbabwean law by the enactment of the Insolvency Act (Chapter 6:07) in 2018.
The enactment saw the substitution of judicial management which was provided for in the old Companies Act by corporate rescue.
Coal producers have been crippled by a skewed pricing structure and foreign currency shortages among other challenges.
Makomo Resources is the largest privately owned coal producer in Zimbabwe. It supplies Zimbabwe’s power stations and industrial and agricultural sectors.