Liquidator has destabilized KCM – Verandas

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Vedanta Resources Limited, the majority shareholder in Konkola Copper Mines (KCM), has accused the provisional liquidator Milingo Lungu of destabilizing the mining company.

Vedanta also said that it believes the appointment of the provisional liquidator, has placed KCM under additional financial pressure.

The investment company in KCM which is going through a ‘messy divorce’ with government said this in a statement released on June 20 after the  Lusaka High Court ruled against its application to join the KCM liquidation process.

“Vedanta is disappointed that Justice A.M. Banda-Bobo has rejected its  application to be joined to the confirmation hearing for the appointment of a provisional liquidator for its subsidiary KCM. Her decision was handed down in the Lusaka High Court this morning,” Vedanta said in a press statement.

“The Provisional Liquidator’s removal of  several knowledgeable managers seconded from Vedanta to KCM has also deprived thebusiness of vital experience when it is already operating in a destabilised environment.”

And Vedanta who were represented by the former Director of Public Prosecution (DPP) Mutembo Nchito said the Zambian government has unfairly tried to exclude Vedanta from decisions about KCM’s future.

“It cannot be right for ZCCM, the minority shareholder to pursue this process without the majority shareholder being heard. Vedanta was also displeased to learn ZCCM had been allowed to modify its original winding up petition, again on an ex-parte basis,” the statement reads in part.

Vedanta was granted leave to appeal and no order as to costs was made. Under the Winding-Up Rules 2004, a person who intends to appear on the hearing of a winding-up petition shall file into court a notice of that person’s intention in Form 3. Vedanta will consider  whether to file a Form 3. There are no just or equitable grounds to wind up KCM. The company directors appointed by ZCCM approved its financial statements on a going concern basis in early May this year.

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One Response to Liquidator has destabilized KCM – Verandas

  1. The ruling was expected. Who didnt know? Zambian courts their rulings in such matters are predictable.

    Muntu
    June 21, 2019 at 3:00 pm
    Reply

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Start: 2019-07-01 End: 2019-07-31