High Court sets RioZim rescue hearing for November 12
A judicial hearing will take place on November 12 to consider whether RioZim Limited can pursue corporate rescue proceedings instead of liquidation. Workers at the mining company filed the petition on July 7 through the Zimbabwe Diamond & Allied Minerals Workers Union, with two additional employees from subsidiary operations joining as applicants.
The Zimbabwe Stock Exchange-listed firm reported negative working capital of approximately ZiG1.04 billion as of June 30, 2024, with liabilities outpacing assets by ZiG149.2 million. Outstanding obligations total US$5.5 million and ZiG9 million for regulatory and contractual payments, while unpaid wages reach US$5.6 million. Power disconnections have affected the Renco Mine because of a US$4.7 million electricity debt. The Zimbabwe Revenue Authority has requested asset documentation amid concerns about fiscal irregularities.
Union secretary general Justice Chinhema petitioned the High Court registrar this week to accelerate the case, which was submitted nearly four months earlier. Corporate rescue provides temporary protection from legal action while a practitioner develops a solvency restoration plan. The company faces criminal tax charges, pension fund disputes, a US$30 million commercial claim and US$55 million owed to an affiliated entity.
