Oliver Kazunga, Senior Business Reporter
HWANGE Colliery Company Limited (HCCL), which is under reconstruction, plans to repossess residential and commercial properties from defaulting debtors.
In a statement yesterday, the Matabeleland North-based coal miner said it has exhausted all forms of engagements with the defaulting tenants.
“Hwange Colliery Company Limited (HCCL) intends to repossess its residential and commercial properties from defaulting tenants. The organisation has exhausted all forms of engagements namely:
“Individual engagements of tenants for debt settlement arrangements, issuing of 14 days notice to remedy breach, and serving three calendar month notices of eviction to tenants who have failed to honour the above forms of engagements,” said the company’s acting managing director, Dr Charles Zinyemba.
“As a last resort, the organisation has resolved to repossess all underperforming properties.”
Following the intention to repossess the properties, all defaulting debtors were therefore, advised to regularise their accounts on or before April 30, 2019 or risk losing the properties.
Last year, the Government, which owns a 52 percent stake in HCCL, put the colliery under reconstruction in a bid to set it on a recovery path as well as turning it into profitability.
The company is heavily indebted and owes the Government in excess of US$150 million, with its liabilities outweighing the value of its assets.
HCCL, which has been performing badly for several years, has been changing management regularly but that has not translated into a turn of fortunes for the company.
The firm has a legacy debt of $352 million, and had entered into a Scheme of Arrangement with creditors.
Justice, Legal and Parliamentary Affairs Minister Ziyambi Ziyambi appointed an administrator, Mr Bekithemba Moyo, together with two assistants.
The reconstruction order was made in terms of Section 4 of the Reconstruction of State-Indebted Insolvent Companies Act (Chapter 24: 27) (No. 27 of 2004).
Companies going through reconstruction shall be under the control and management of the administrator, and boards of such companies shall be divested of the control and management of the companies’ affairs. — @okazunga