HARARE – The number of companies being put into liquidation has dramatically risen to its highest levels since President Robert Mugabe’s administration took power just over 100 days ago promising to stimulate economic growth and promote new jobs.
The latest Government Gazette is replete with companies placed under judicial management, confirming the logic that company failures rise as economies collapse.
At least four companies were placed under judicial management last week while two have been liquidated.
The November 14 Government Gazette showed that the High Court had placed the struggling firms under judicial management amid rising creditor pressure.
The judicial management regime was implemented to allow for the rehabilitation of insolvent commercial enterprises under the charge of a court-appointed officer, while keeping creditors at bay via a statutory moratorium on claims for the duration of the judicial management order.
Apex Holdings Private (Pvt) Limited (Ltd) has been placed under judicial management by the High Court.
Regis Saruchera was appointed the provisional judicial manager.
On the same day, the High Court also placed Gulliver Consolidated Limited and its operating divisions, Industrial Galvanizing and Fabricating, Lysaught Steel Merchants, More Wear Consolidated Industries Pvt Ltd, Megasteel and Moresteel Pvt Ltd under judicial management.
Saruchera was again appointed the judicial manager.
The High Court has also placed Harare Produce Sales Pvt Ltd under judicial management and Shepherd Chimutanda was appointed the provisional judicial manager.
Polyfoil Zimbabwe Pvt Ltd was also placed under judicial management by the High Court, with Tapiwa Chizana appointed provisional judicial manager.
Two companies were declared insolvent.
Stilnart Investments Pvt Ltd was placed under liquidation and David Kaiyo was appointed the provisional liquidator of the company.
On the same day, Tipbridge Enterprise Pvt Ltd was also placed under insolvency and Kaiyo was appointed the liquidator.
Even State firms are struggling to stay afloat amid a tightening liquidity crunch.
The State-run National Railways of Zimbabwe has sought permission to retrench 6 000 workers, or 86 percent of its workforce to slash running costs.