CONTINUED operational challenges have seen Hwange Colliery Company Limited (HCCL) fail to pay its creditors on time as agreed under the scheme of arrangement that was entered into last year.
Scheme chairperson, Mr Andrew Lawson, admitted in a statement that the troubled colliery had fallen behind by two months in the payment of $4,6 million due to employee creditors under the company’s creditor’s scheme of arrangement.
He said the company has also faltered on the payment of interest valued at $3 million on Class A debentures that should have commenced on the anniversary of sanctioning of the scheme by the High Court on 10 May 2017.
“The company has accumulated a coal stockpile of about 345 000 tonnes worth $13 million, being 1,5 months coal under the supply agreement with the Zimbabwe Power Company that requires delivery before payment will be made,” he said.
Last Monday, the HCCL board announced the suspension of acting managing director Mr Shepard Manamike and executive, finance and administration head Mr Tawanda Marapira citing unethical conduct and failure to meet key obligations. The board had said the measure was an effort to deal with unsatisfactory work performance and enforcing a culture of performance. HCCL produced 215 564 tonnes of coal in August 2018 of which 169 520 tonnes were sold.
Of the mined product, 34 579t was from underground mining operations. The firm remains insolvent after posting $23 million loss in the first half of 2018.
- Chronicle
