BULAWAYO – Timber processing firm, Mukusi Products, has escaped liquidation and resumed production this month after receiving significant orders that were paid for upfront, the judicial manager said on Monday.
Last month, judicial manager Phillip Ndlovu gave it two months to find a new investor willing to inject $2 million or face liquidation despite having a solid asset base.
But Ndlovu said that the company, although it had no new investor, had received significant prepaid orders and would not be liquidated.
“Some meaningful orders with advance payments have been received from customers and limited production has resumed. Liquidation will be avoided and this is a good start.
“Patient creditors will be updated soon, particularly the banks,” Ndlovu said.
The company belongs to former Water minister Samuel Sipepa Nkomo and was put under judicial management in 2011 after he took over in August of the previous year.
It owes creditors in excess of $2 million and its 235 workforce over $200 000 in unpaid wages.
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.
– The Source