Lands and Agriculture Minister Anxious Masuka has approached the High Court seeking an order to place the Cold Storage (Pvt) Limited under judicial management.
According to court documents seen by NewZimbabwe.com, Masuka wants the meat processer placed under corporate rescue proceedings in terms of Section 124 of the Insolvency Act Chapter 6:07) pending the discharge of the final order in terms of Section 125 (2) of the Insolvency Act.
“Subject to the provisions of section 124 (5) of the insolvency Act Chapter 6:07, the court hereby appoints an interim corporate rescue practitioner for the respondent company, Mr Kudenga of BDO Zimbabwe Charted Accountants which practitioner is not disqualified in terms of Section (3) of the Act and with powers set out in section 133 of the Insolvency Act, Chapter 607 of this order.
“The interim Corporate rescue practitioner shall forthwith take over the management of the respondent’s company affairs and shall prepare and submit reports in accordance with Section 125 of the Insolvency Act (Chapter 6.07),” reads part of Masuka’s application.
The minister has also applied for divestment of the company’s Board of Directors from the management of the affairs of the company in terms Section 13 of the Insolvency Act (Chapter 6:07).
“The rescue practitioner in conjunction with the Master of the High Court shall within 15 business days convene a first meeting of creditors in accordance with Section 140 of the Insolvency Act (Chapter 6.07).
“The interim Corporate rescue practitioner shall be entitled from the assets of the respondent company to the payment of remuneration at a rate to be determined by the master of the High Court and to reimbursements of all out of pocket expenses incurred by them in the course of their duties in accordance with Section 136 of the Insolvency Act (Chapter 6:07)
“It is clear that unless something is done, the noble intentions of the government to revive the applicant company would be quashed. To that end, it is applicant ‘s prayer that the respondent be placed under Corporate rescue proceedings,” the minister further applied.
The government official claimed that government’s efforts to revive the company has been frustrated by the respondent’s workers.
CSC was given ten days to file opposing affidavits, failure of which the matter will go on full trial.
In June this year, the government cancelled the much touted US$130 million deal with a United Kingdom company, Boustead Beef for the recapitalization of the company.
The multi-million -dollar deal was announced in November 2018 with government indicating the investor was willing to inject US$130 million to revive the defunct state -owned meat processor.
Currently, the company does not have a board or executive.