The High Court of Zimbabwe has ordered a meeting between Lobels Holdings, Lobels Bread and its creditors to map out a strategy of settling debts.
According to the High Court Order the meeting will be convened under Afaras Gwaradzimba on February 22.
“The purpose of the meeting is to consider and if deemed fit, to agree with or without modification to the scheme, the basic characteristic of which is that Lobels Holdings and Lobels Bread shall sell some of their assets to settle the amounts owed to creditors of Lobels Bread,” the High Court said in a court order.
Last month auctioning of Lobels Bread property was called off after it entered into talks with the National Social Security Authority (NSSA). It is estimated Lobels bread owes NSSA over $600 000 in statutory obligations.
Several banks are also owed significant amounts of money by both Lobels Holdings and Lobels bread.
“Each creditor is entitled to attend, speak and to vote at the respective scheme meeting and is entitled to appoint one or more proxies to attend, speak and vote in his or her stead,” the High Court said.