Originally by Zimbabwe Independent
THE Zimbabwe Diamond Consolidated Company (ZCDC) has made moves to acquire Limpopo Mining Resources also known as River Ranch Mine, previously linked to the late army general Solomon Mujuru, US$4 million, but faces resistance from Rani Investments which has filed a High Court application describing the offer as “too ridiculous to even consider”, court papers have shown.
Rani Investments the majority shareholder of Limpopo Mining Resources Private Limited with a shareholding of 80% this week filed a High Court application requesting for the removal of the company from liquidation.
ZCDC wants to acquire Limpopo Mining Resources through real time gross settlements(RTGS) but the move has been rejected by Rani Investments which described it as “ridiculous” as it only constitutes about 4,8% of the debt owed to the creditors.
According to the liquidator in a letter dated March 7 2018, the extent of Limpopo Mineral Resources debts amount to US$21,4 million and Rani Investments being the major shareholder is the major creditor with US$21 million.
Through the company’s operations director Karl Snater, Rani Investments wants the setting aside of the order placing Limpopo Mining Resources under liquidation in terms of the provisions of Section 227 of the Companies Act (Chapter 24:03).
Limpopo Mineral Resources was placed under liquidation by the High Court (HC7398/2012) in 2012 after the company approached the courts on a voluntary basis for an order to be placed under liquidation due to some operational challenges.
The company requested to be placed under liquidation after it became insolvent. A provisional order for the liquidation of Limpopo Mining Resources was then granted by the High Court on July 18 2012 and was confirmed on September 12 2012.
“The first respondent (liquidator) has received an offer from the Zimbabwe Consolidated Diamond Company for the purchase of the company and its assets in the sum of US$4 million. Applicant wishes to revive the operations in Limpopo Mineral resources, enter into a compromise with its residual creditors and convert part of the debt it is owed into equity and part of it into a long term loan. It is on this basis aforesaid that the applicant has approached this honourable court for relief as set out in the draft order,” reads Snater’s application.
Snater said Rani Investments will inject enough money to pay off its creditors and the statutory fees for it to be removed from liquidation.
He also said the liquidation of Limpopo Mineral Resources has not yielded any positive results as no meaningful progress has been made since 2012 when the company was placed under liquidation.