HIGH COURT STAYS LIQUIDATION IN GEMCANTON WOES
THE Kitwe High Court has halted the provisional liquidation of Frango Finance Limited, a company owned by Israeli billionaire Lev Leviev with 50 percent shareholding in Gemcanton Investment Holdings Limited.
The provisional liquidation is part of the new twist to the ongoing shareholder disputes at the Gemcanton emerald mine in Lufwanyama where mining magnate Abdoulaye Ndiaye or Gunase is fighting with his Israeli partner.
Judge Timothy Katenekwa two weeks ago granted the Order of provisional liquidation of Frango Finance Limited and appointed Joseph Chilinda as provisional liquidator ex-parte or without hearing the other side.
However, the same Judge stayed the appointment of the liquidator on Wednesday following an application by shareholders of Frango Finance Limited who applied to be joined to the proceedings as their company is not insolvent at all.
“It is hereby ordered that the order (of liquidation) granted on the Petitioner on the 18th February 2019 herein is hereby stayed pending inter party hearing on the 18th day of March 2019, the Order read signed by Judge Katenekwa.
According to the affidavits filed into court, the shareholders of Frango Finance Limited stated that the company is registered in BVI and is solvent and never had problems in paying debts.
The company further stated that the debt in dispute is before the court of law and wondered how such an action can be commenced in Kitwe when the matter is before the Court of Appeal.
Judge Katenekwa granted the Order of stay of the liquidation pending hearing both parties.
Frango is a company owned by Israeli billionaire Lev Leviev who has been embroiled in a shareholding dispute with Gunase of Senegalese origins over the running of Gemcanton mine in Lufwanyama area.
The courts in London have since ordered that Ndiaye pays his Israeli partner USD50 million following his failure to deliver the emeralds which was paid for in full by the Israelis. The court in UK, Switzerland and Canada have also issued seizure orders for Gunase assets as part of the payments of the debt.