Government appoints Kudenga to rescue CSC

By Nomthandazo Gabi and Ruvimbo Chatyoka
THE Government has appointed a Corporate Rescue Practitioner, Ngoni Kudenga of BDO Zimbabwe to resuscitate the ailing Cold Storage Company (CSC) after the Minister of Lands, Agriculture, Water and Rural Resettlement Dr Anxious Masuka applied to have the company placed under a corporate rescue plan.
The rescue plan is implemented along guidelines provided by the insolvency Act Chapter 6: 07.
Previously, a US$400 million agreement was made with a United Kingdom-based investor (2019), as authorities looked to resuscitate the CSC, through the agreement which also obliged the investor to use the CSC’s assets and extinguish the company’s liabilities, however, there’s been no real traction on the ground, prompting Minister Masuka to make the CRP application.
Following the application by Minister Masuka, the court granted the company an order which states that the rescue practitioner in conjunction with the Master of the High Court shall within 15 business days convene the first meeting of creditors.
Kudenga will have overall responsibility of the CSC to avoid the liquidation of the company while ensuring that it remains in a solvent state for the benefit of the company stakeholders, creditors and its workers.
The plan must also, incorporate the Livestock Growth and the National Development Strategy 1.
Furthermore, the rescue practitioner will be investigating the company affairs business and property and financial situation in terms of Section 134 of the Insolvency Act.
Moreover, it will investigate previous CSC operating and expose the weakness within the system and recommend possible solutions.
CSC has terminated contracts of a number of employees as its United Kingdom-based investor; Boustead Beef (Pvt) is struggling to revive the company.
Boustead Beef promised to bring back to life struggling CSC after affirming to inject a total of US$400 million over the next five years to revive the company that had become dormant in the last two decades.
In March 2019, the government signed an agreement for a joint venture with the UK-based investor for a period of 25 years.
Under the deal, Boustead Beef was to finance the rehabilitation of some CSC farms where cattle fattening used to take place.

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