David Whitehead (DW) has postponed two crucial meetings where shareholders and creditors were expected to consider a scheme of arrangement designed to revive the company, the judicial manager said in a statement.
Mr Knowledge Hofisi said the meetings, which were initially expected to be held tomorrow and Friday will now be held on July 15 and 16.
Mr Hofisi is expected to present an update on the resuscitation of the company, presentation of audited financial statements as well as consideration of the implementation of a scheme of arrangement.
“Separate meetings of creditors and members that had been scheduled to take place on June 27 and 28, 2019, will now be held on July 15 and 16, 2019,” said Mr Hofisi adding that “the decision has been taken due to circumstances beyond our control”.
The meetings follow the recent takeover of the former textile giant by Agri Value Chain of Zimbabwe (AVCZ), which acquired 51 percent, breaking an eight year-long hunt for the investor.
The shareholding acquired by AVCZ was previously owned by Elgate Holdings, which lost its 51 percent after failing to fully pay for the shares more than a decade after signing a share subscription agreement with DW.
The agreement was terminated early last month on the basis of “non-performance” by Elgate after the High Court ruled the concession for the purchase of the shares be revoked.
Formerly owned by Lonrho plc before a management buyout in 2001, led by former CEO Edwin Chimanye, it 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.