BY MTHANDAZO NYONI
WET Blue Industries creditors have approved a resolution to remove the company from judicial management following the takeover of its parent company, Cold Storage Company (CSC) by Boustead Beef Zimbabwe.
According to minutes of a special meeting held on May 7, 2019 in Bulawayo between judicial manager Chrispen Mwete, the creditors, principal assistant master and Boustead Beef Zimbabwe management, the company will be out of judicial management soon.
“The following resolutions were tabled for voting and adoption and were all voted yes and duly adopted: Wet Blue be removed from judicial management; all employees of Wet Blue Industries will remain employed by Wet Blue as a subsidiary of Boustead Beef Zimbabwe spread over a total period of not more than 54 months at an agreed already rate and salaries will be paid as they fall due,” the minutes read in part.
Wet Blue used to be one of the biggest tanneries in Zimbabwe, processing between 18 and 25 tonnes of leather a month for export, on behalf of CSC which was the country’s largest abattoir.
The company was, however, placed under judicial management in 2014 after business went down following CSC’s demise.
Cabinet recently approved a joint venture between CSC and a United Kingdom firm, Boustead Beef (Pvt) Limited, which will see the investor injecting US$130 million into the meat processing firm.
”Initially, employees of Wet Blue Industries were to be treated differently from those of CSC, but the Boustead Beef Zimbabwe management, through its directors, have resolved to just treat all the employees in the same way with regards their employment and clearance of their claims,” he reported.
Mwete said he engaged with Wet Blue directors and employees on the new arrangement and all agreed to the new terms.
The proceedings to remove the company from judicial management would be instituted by Majoko and Majoko Legal Practitioners.
Payment of salaries to employees and claims would start after 10 months.