HomeBusinessByo Timber firm faces liquidation

Byo Timber firm faces liquidation

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BULAWAYO – Bulawayo-based timber processing firm, Mukusi Products, has two months to find a new investor willing to inject $2 million or face liquidation, the judiciary manager said on Monday.

The company belongs to the former water minister Samuel Sipepa Nkomo and was put under judicial management in 2011 after he took over in August of the previous year.

The company owes creditors in excess of $2 million and owes its 235 workforce over $200 000 in unpaid wages.

Judicial manager Phillip Ndlovu told The Source that the company has to get new investors within two months or be liquidated despite having a solid asset base.

“We are still waiting for investors (which would) save the company from liquidation.

“The company’s assets far exceed what is owed,” Ndlovu said.

Mukusi is part of Khami Enterprises, which has under its wing companies in tourism and wildlife, property, renewable energy and agriculture sectors and owns a sawmill in Tsholotsho in Matabeleland North.

It manufactures teak products and its sales are mainly in Southern Africa.

About 10 Bulawayo companies have either been liquidated or placed under judicial management between January and June this year.

Lasker Brothers, Trade Power and Wenbrough were put under liquidation after they failed to service debts. Other companies, Chakata Resources Zimbabwe, Tagarira Brothers, Setsail Equipment, Observant Enterprises, Hadad Enterprises, Willsgrove and Savanna Wood were placed under judicial management.

— The Source

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