KCM’S DEBT TO CREDITORS EXPECTED TO RISE TO 4.3 BILLION DOLLARS, THREATENING THE COMPANY’S VIABILITY
By Darius Choonya
Konkola Copper Mines’ (KCM) viability risks being affected by debt owed to several creditors.
According to the official receiver of the mining firm Celine Nair, the mining firm is highly indebted to several creditors and as at December 2023, the actual total debt of KCM was in the region of 4.5 million dollars but expected to rise to approximately 4.3 billion dollars at the end of March 2024.
She says the company, if not allowed to enter into negotiations with its creditors to enable it to service the debts over a period of time, may be wound up completely as the company’s finances deteriorated under the care of its former provisional liquidator, Milingo Lungu.
In an affidavit in support of summons for an order to convene a creditors’ meeting to consider a scheme of arrangement filed before the Lusaka High court, Ms. Nair says in its current position, KCM faces a real threat of winding up, which would be extremely disadvantageous to its creditors, employees, shareholders and the country.
Going by the application of Ms. Nair, the court has since directed that a meeting of creditors to consider a scheme of arrangement be convened with the inter-party hearing of the application to be heard before Justice Charles Kafunda in Chambers on February 21, 2024.
This liquidation formula is what was used to cannibalise Ndola Lime company