Workers want Redwing Mine under corporate rescue again
Redwing Mining Company employees have applied to have the gold mining company returned, for the second time, under the corporate rescue, two weeks after the Supreme Court nullified the earlier order citing legal technicalities.
The Supreme Court dismissed the locus standi of the Associated Mine Workers Union of Zimbabwe (AMWUZ), which applied for the corporate rescue while the notice of intention, also known as the standard notice to place the company under the reconstruction process was not properly issued.
The workers made the application at the High Court on the basis that the Supreme Court ruling was basically on legal technicalities and not on merit.
“Applicants ultimately seek the appointment of Knowledge Hofisi of Aurifin Capital as the corporate rescue practitioner,” said the workers.
“Mr Hofisi is a seasoned corporate rescue practitioner who managed to revive David Whitehead, a company that had been under supervision for over 10 years and which at times… Was said to be beyond redemption.”
Redwing, estimated to have a gold reserve worth US$30 million, is one of the gold mines owned by Mzi Khumalo’s Metallon, alongside How Mine near Bulawayo and Mazowe gold mine.
According to the court application, the company is in financial distress and failing to pay its debts. As such, returning it to its shareholders would lead to its collapse with workers stands to be the most affected, the workers argue.-ebusinessweekly
