ZCCM-IH has denied reports that it has sold off Ndola Lime Company.
In a statement, ZCCM-IH Spokesperson Loisa Mbatha clarified that Ndola Lime Company has ceased to exist due to huge debts and that a new company known as Limestone Resources Limited has been created.
“Over the past 8 years Ndola Lime Company Limited (NLC) accumulated an insurmountable amount of debt, in excess of K1 billion, owed to various statutory bodies as well as private creditors, which led to the Company being technically insolvent,” Ms. Kakoma said.
“In September 2018, two (2) former employees instituted business rescue proceedings in the Lusaka High Court pursuant to the Corporate Insolvency Act No. 9 of 2017,” she said.
“By order of the Court dated 5th October 2018, the Official Receiver was appointed as Interim Business Administrator of NLC. Without the prospect of recapitalisation, the Business Rescue Administration (BRA) process would effectively result in the closure of NLC’s business and loss of jobs.”
“As such, ZCCM Investments Holdings Plc (ZCCM-IH) requested and was granted an Order to convene a meeting of creditors to consider and approve a proposed Scheme of Arrangement.”
“The restructuring proposals in the Scheme of Arrangement were to:
i. Create a New Company (NewCo);
ii. Restructure the liabilities of NLC;
iii. Transfer the assets and business of Ndola Lime to the NewCo;
iv. Retrench, pay and transfer the employees of NLC to the NewCo; and,
v. Dissolve NLC with or without winding up.”
She added, “The NewCo has been incorporated and is known as Limestone Resources Limited (LRL) 100% owned by ZCCM-IH.”
“At a Final Creditors Meeting held on the 10th June 2020, the creditors passed a special resolution to approve the Restructuring Proposals as contained in the Scheme of Arrangement.”
Ms. Kakoma said the main objectives of the restructuring plan are for NLC’s successor company, LRL, to commence operations on a clean slate, debt free, recruit a new management to spearhead the re-orientation of strategy and operations without any legacy problems associated with NLC.
“The achievement of the objectives above would enable effective recapitalisation of the business. In order to preserve jobs, a recruitment exercise for LRL will commence beginning August 2020.”
“The proposed restructuring plan ensures the continuation of NLC’s business, albeit under a different entity name – Limestone Resources Limited (LRL). This new approach and plan ensures that employee welfare is prioritised, NLC’s debt is resolved, and that NLC’s core assets are secured,” she said.
“ZCCM-IH is currently in the process of obtaining statutory and other approvals to facilitate the transition of NLC to LRL. The processes of approvals, transfer, recruitment and recapitalisation will take approximately six months from August 2020.”
She said ZCCM-IH remains committed to revamp the operations at NLC, under a new entity and brand, and the proposed restructuring plan provides practical solution to the key challenges currently faced at NLC.
Creating another company so as to run away from debts you created the same way our country is being auctioned off is the way Ndola Lime is being handled by these PF thieves …meanwhile they will not tell you exactly who are the shareholders in this new company.
The shareholder of the new company is ZCCM-IH at 100% ownership. They don’t say how the creditors of Ndola Lime Co will be paid and by who. Even on the more than US$100m lost on the kiln deal they hv chosen silence. That’s their prerogative but that’s not how you put matters to rest.
Engineers demand answers over Ndola Lime’s dysfunctional kiln MAST by Darious Kapembwa on November 11, 2019
ENGINEERS in Zambia are demanding answers over the dysfunctional “new” kiln at the struggling Ndola Lime Company which cost US $100 million borrowed money.
Ndola Lime, a wholly owned government company through ZCCM-IH, was established in 1931 with the purpose of supplying lime to the mines.
But with the passage of time, reduced production in the mines leading to privatisation, Ndola Lime’s business slowed down, the future was uncertain, and old equipment needed expansion, recapitalisation and refurbishment.
The company board in 2007 decided to do major recapitalisation of the plant which was only actualised around 2010-11 with an initial estimated cost of $74 million but rose…
Further, according to management at Ndola Lime, it was claimed TERRUZZI FERCALX GROUP, the Italian company that supplied the kiln technology, went bankrupt after the project and changed into another company which means they cannot be recalled to come and explain why a wrongly designed kiln was supplied or rectify the problems which has further shocked stakeholders within government who fear to come out openly for fear of losing jobs.
The engineering manager at Ndola Lime Sydney Matamwandi, president of the Engineering Institution of Zambia (EIZ) who when asked if the loan or project was insured or had guarantees from the supplying company involved to take care of any such shortcomings, could not answer but referred questions to “the shareholders”.
Matamwandi explained the scope of the…
The worst part is the engineering manager at Ndola Lime Sydney Matamwandi who happens to the president of the Engineering Institution of Zambia (EIZ).
ZCCM-IH leaves a sour note on the palate.
100% ownership, I take it we/our children pay off the debt?
I hope those calling for nationalization of the mines are taking note.
We simply do not have the discipline to run these things on our own. We do have the ability no doubt but we just need someone to be watching us for these things to succeed. Even the new company trying to run away from the mess they themselves created, will also run into the ground!
Interesting, if supported by law. You can dribble your creditors so crudely? Any legal minds here?
Interesting, if supported by law. You can dribble your creditors so crudely? Any legal minds here?
ZESCO should also be sold off the same way, ZESCO has disappointed the people of Zambia. How can we be having loadshedding for 10-12 hrs everyday. Totally unacceptable.
Meanwhile, 2021 they must go.
Mr. Mabvuto Chipata, a Zimbabwe by descent, a rogue accountant fired from all private companies he worked for Professional Insurance, Intermarket Discount House, for stealing in league with CEOs. Now he is a CEO of the richest parastatal of Zambia, dishing out loans and investing in bad companies, latest in a killing company of an India bought at a high premium ( sharing of excessive pricing with full blessing of the Minister of Finance)
Ba LT one paragraph you are telling us about Ms Mbatha, The next you are quoting Ms Kakoma whom you dont introduce. Who is who? Muyaziba ma five Ws and an H?
Tibaziba aba.
Not all employees will be taken on by the new company.
I smell IDC ugry face allover this story.
The way I have come to know Zambia’s mismanagers, the company’s money was obviously being mismanaged and misappropriated as usual as Government always stayed uninformed.
That’s how h² duped us.
Iwe thorn don’t be dull. After 9 years of pf misrule ati hh who has not even tasted power. Find another song. The same old tune? It’s getting boring. Probably you are sitting In the dark typing because of load shedding ati hh. Grow up small boy and smell the coffee. 2 terms of pf are coming to an end and what have they got to show for it? What mmd achieved by bringing lots of people to middle income have gone back to being poor. The poor during mmd have gone to being beggars and the only thing you think of is hh. This is not funny any more. Grow some scopo.
This statement doesn’t make sense, so why should we even comment further. I told you that Yaluma is a foool, he wants to foool us well
This statement doesn’t make sense. This what I meant when I said Yaluma has no brain.
Crazy weldi in the Zambia