Tutwa’s law firm seeks mining firm’s liquidation

LUSAKA lawyer Tutwa Ngulube’s law firm has petitioned the Lusaka High Court to wind up a Kabwe based mining company, Avarmma Mining Company claiming that it owes him over $400, 000 in legal fees and has been unable to pay its creditors since last year.

Tutwa Ngulube and Company in its winding up petition cited Avarmma Mining Company limited, Topfat Gold mining limited and Zantra Holding Limited.

It requested that Mr Philip Chibundi of Mosha and company, a legal practitioner be appointed as liquidator subject to supervision of the court.

The law firm stated that the normal capital of the respondents is 4,100, 000 and their par value per share is 1000 and that Avarmma Mining Company has a business entity by the name of Zantra Holding Limited whose ordinary shares are 3,484,300.

It stated that the principal object for which the companies were incorporated according to Patents and companies Agency (PACRA) was to carry on the business of mining minerals.

The law firm claimed that from sometime in or about 2018, the respondents have been unable to meet their obligations and pay their debt to their creditors including themselves.

It stated that the companies were currently indebted to it in the sum of US$425,000 in Legal fees including interest, costs and consent judgement of the High Court.

The law firm claimed that it had on several occasions demanded payment of the money owed to it but that the respondents do not have sufficient cash flow and working capital to pay it.

“The petitioner as a creditor has demanded for payment of the said amounts and it is clear that the company does not have sufficient cash flows and working capital to enable it pay its debts as and when they fall due.

“The petitioner has therefore, taken out a notice of intention to proceed under cause number 2016/HP/ 858 and has written several demand letters to demand payment but the respondents have failed and or neglected to settle their indebtedness to the petitioner,” read part of the petition. The firm claimed that the mining companies had not made any attempts to settle their indebtedness to the law firm despite the many efforts to recover the said amount. The law firm therefore, claimed that the respondents were unable to pay their debt and it is just and equitable that they be wound up and that such other order may be made as the court shall deem fit.