KCM, CREDITORS TO MEET

Judge Kafunda has also ordered for an inter-parte hearing of the application in camera on February 21, 2024.

In this matter, ZCCM-IH in 2019 petitioned the High Court to place KCM under liquidation claiming that it was being managed in a manner that is detrimental to its interests. It alleged that the giant mining firm whose majority shareholder was and is still Vedanta Resources Limited evaded taxes, pollution and it was insolvent.

But on February 5, this year, KCM applied for an order to convene a creditor’s meeting to consider a scheme of arrangement.

In an affidavit in support of the summons, Ms Nair stated that a meeting held between KCM, ZCCM-IH and Vedanta, all the parties did admit that the financial health of the mines had deteriorated, and any delays to enter into negotiations with its creditors to enable it service the debts over a period of time, KCM may be wound up completely.

“That it is in the best interest of KCM, its members and its creditors that a meeting of creditors and members be convened for purposes of a discussion and consideration of a proposed scheme of arrangement to seek to save KCM from total collapse under the unbearable weight of its debt,” she submitted.

“That in its current position, KCM faces a real threat of winding up which would be extremely disadvantageous to its creditors, employees, shareholders and the Zambians, the nation as a whole as I explained in more detail,” she added. Ms Nair submitted that the order staying the proceedings in the winding up proceedings in the High Court had been vacated on certain conditions by consent of parties in the Court of Appeal.

“That class 1 Scheme Creditors would be any creditors which in aggregate with their affiliates, hold claims the amount of which is less than US$1, 000, 000 whilst Class 2 Scheme Creditors would be any creditors which in aggregate with their affiliates, hold claims the amount of which is equal to or greater than US$1, 000, 000,” she said.