THE Master of the High Court has appointed Winston Tinotenda Militala as the interim corporate rescue practitioner for Westwood Industrial (Pvt) Ltd, trading as Lonely Mine.
The appointment follows changes in the administration of the corporate rescue process after previous practitioners exited the proceedings at different stages.
Corporate rescue is a legal process designed to allow financially distressed but potentially viable companies to reorganise their affairs, stabilise operations and avoid liquidation.
Under the law, a corporate rescue practitioner assumes full management control of the company, develops a rescue plan and oversees its implementation to rehabilitate the business or achieving a better return for creditors than liquidation would realise.
Addressing journalists in Harare yesterday, Militala said the corporate rescue process was still in the early stages.
“At this stage, the focus is on assuming control of the company’s affairs, securing and preserving its assets, reviewing financial and operational records and establishing an accurate and independent position of the business,” he said.
Militala said the process would be conducted in strict compliance with the law and established professional standards.
“Given the circumstances surrounding prior developments, my focus is to ensure that the process proceeds strictly in accordance with the Insolvency Act [Chapter 6:07], with full regard to independence, accountability and fairness to all stakeholders, including creditors, employees and investors,” he said.
He added that he brought relevant experience in insolvency administration and corporate rescue and was prepared to assume the responsibility.
“I am committed to handling this process with the seriousness it deserves. It is important that the integrity of the process is maintained and that all stakeholders can have confidence in its outcome,” Militala said.
While declining to comment on specific findings at this stage, he said a comprehensive assessment of the company’s affairs would be undertaken.
“It would be premature to draw conclusions before completing a thorough review. However, stakeholders can be assured that the process will be conducted efficiently, transparently and in full compliance with the law,” he said.