RioZim rescue case heads to court as liquidation looms
Zimbabwe’s High Court will hear arguments on Nov. 12 regarding a corporate rescue petition for RioZim Limited, a mining company facing potential liquidation. Workers applied to the Zimbabwe Diamond & Allied Minerals Workers union on July 7, with union secretary general Justice Chinhema requesting expedited proceedings after nearly four months of delay.
Financial records show the Zimbabwe Stock Exchange-listed firm carries current liabilities exceeding assets by roughly 1.04 billion ZiG and total liabilities surpassing assets by 149.2 million ZiG as of June 30, 2024. The company owes 5.5 million dollars and 9 million ZiG in regulatory payments while facing a 4.7 million dollar electricity debt that resulted in power disconnection at Renco Mine. Outstanding salary obligations total 5.6 million dollars alongside multiple labor disagreements.
Legal troubles compound financial pressures, with criminal allegations from tax officials and the Mining Industry Pension Fund, a 30-million-dollar commercial claim, and 55 million dollars owed to an affiliated entity. Gold output has dropped despite rising international prices. Corporate rescue proceedings temporarily halt legal actions against struggling businesses while practitioners develop recovery strategies aimed at restoring solvency.
