HARARE – The liquidation of a Masvingo hotel whose order was been granted by the High Court last week, is set to drag as shareholders are challenging the order.
Lees Hotel owners are also embroiled in another liquidation dispute before the courts after their microfinance firm McDowells International was placed under final liquidation recently after failing to pay debts worth $16 million.
Winsley Militala of Petwin Executor and Trust who is the final liquidator of McDowells was appointed liquidator for the hotel whose proceeds are expected to also pay creditors of the micro-finance firm.
Last week, one of the shareholders, Member Chipamba told creditors that he was contesting the placement of Lees Hotel under liquidation.
“We need to know who appointed him (Militala). We have since made an application for the rescission of the judgment,” Chipamba said.
The assistant master, Stellah Chapwanya who was presiding over the case at the High Court said she was going by the order granted by the court which could not be reversed in the meeting.
“The order which I have is placing the company under liquidation and confirming that Militala is the final liquidator,” she said.
Chipamba said previous meetings with Chapwanya over the issue were “inconclusive” and challenged the appointment of Militala whom he said was not nominated by the creditors.
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“We have done it for minuting purposes so that it is clear to the creditors that an application has been made challenging the liquidation,” he said.
In February, over 1 500 creditors, mainly civil servants besieged the High Court and voted for McDowells International to be liquidated to recover their money after its licence was cancelled by the central bank for illegally mobilising deposits.
They also asked the liquidator to recover and sell all the company’s assets, including some in South Africa and the Lees hotel.
Recently, creditors were informed that investigations were being instituted into the goings on at McDowells after it emerged that there were some off-shore accounts linked to it in the United Kingdom and South Africa.
Over 17 000 transactions involving large sums of money are also being investigated.
McDowells owners were also accused of clandestinely disposing of seven of 21 commercial stands belonging to Lees Hotel.
As of last year, the company’s assets – plant and equipment were valued at $5,9 million but a forced sale would only fetch $1,6 million.
Fixtures and fittings were worth another $1,1 million, but would fetch $286 000 under a fire sale.
Trade debtors and other receivables were worth $980 000 which the judicial manager said would be difficult to recover.
– The Source
