Siphakeme .Mnindwa
Mukudzei Chingwere, Harare Bureau
Khayah Cement Limited has entered corporate rescue proceedings due to the effects of the crippling illegal economic sanctions that have severely impacted its operations.
The company adopted a resolution effective from December 20 to initiate a corporate rescue procedure under the Insolvency Act and Mr Bulisa Mbano of Grant Thornton (Zimbabwe) Chartered Accountants has been appointed as the corporate rescue practitioner.
The resolution was filed with the Master of the High Court and the Registrar of Companies to start a critical step in the company’s efforts to navigate its financial difficulties.
Khayah Cement, one of the local companies under illegal sanctions, has had to go through their operations under the weight of the illegal economic embargoes.
The company said creditors and other stakeholders would be notified of further processes by the corporate rescue practitioner.”
Mr Mbano’s role will be crucial in guiding the company through this challenging period and ensuring that creditors and stakeholders are kept informed of all developments.
The Western-imposed economic sanctions have created an untenable business environment for Khayah Cement, which is vital for the local construction industry.
The inability to access necessary resources has not only affected the company’s production capabilities but had also had a ripple effect on employment and related sectors.
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