Government has announced the reconstruction of Hwange Colliery Company limited which will see the administrator mandated to spearhead the turnaround of the entity taking control of the firm.
According to the latest government gazette, DBF Capital co-founder Bekithemba Moyo has been appointed the chief administrator and assisted by commercial lawyer Mutsa Remba together with great dyke investments chief operating officer Mr Munashe Shava.
The coal mining firm is reported to be insolvent and owing the government in excess of us$150 million.
The situation has been compounded by the fact that the firm has been defaulting on the scheme of arrangement it entered into with creditors.
The reconstruction of the company has also empowered the administrator to raise funds in any way without the authority of the shareholder for the purpose of reconstruction subject to the rights of the creditors of the company.