Fairness Moyana Chronicle Correspondent
DEBT-RIDDEN coal miner, Hwange Colliery Company Limited, yesterday heaved a sigh of relief after a public auction to dispose of its mining equipment worth millions of dollars was cancelled. The property was attached recently by the district deputy Sherriff over unpaid debts to four of its creditors. The auction which was supposed to be held yesterday was reportedly cancelled at the last minute after parties opted to resolve the standoff out of court, leaving prospective bidders stranded.
On Friday the district Deputy Sherriff said in a notice that it would be selling some of the company’s movable assets at a public auction in the town yesterday, in an effort to settle legal wrangles pitting HCCL with some of its creditors — Wiltshire Explosives (Pvt) Ltd, Renaissance Merchant bank, Shepco Industrial suppliers and Themba Sibanda.
The companies who are suppliers of equipment and services to Hwange Colliery are reportedly owed close $2 million while a former colliery employee, Sibanda is owed over $40,000. Equipment that almost went under the hammer included some mining machinery, vehicles and office furniture.
The public auctioning of mining equipment belonging to Zimbabwe Zxhiang, a new Chinese company processing coal in Lukosi in which Hwange Colliery was the plaintiff which was supposed to take place yesterday at Lukosi business centre was also cancelled. This was after both parties decided on an out of court settlement over the debt.
Briefing the Parliamentary Portfolio Committee on Mines and Energy which had visited the company on a fact-finding mission recently HCCL managing director, Thomas Makore said legacy debts were a major impediment in efforts to turn around the company’s fortunes after a decade of financial crisis.
He said they were constantly being dragged to court by creditors over debts as they were faced with cash-flow challenges despite the securing of new equipment worth $30 million from Belarus and India.
The company has been grappling with litigation from various suppliers and former employees with cases worth $20 million having been awarded against it.