Pride Mzarabani
HARARE – Bindura Nickel Corporation (BNC) administrators are set to conduct a thorough examination of the company’s financial status and operational performance.
In the latest notice to shareholders, acting finance director Simon Masvipe indicated that shareholders are advised that the Administrator is diligently working to fulfill the mandates outlined in the Reconstruction Act. This involves a comprehensive investigation into the company’s financial standing and operational performance to develop a viable strategy for the company’s revival.
“Shareholders are hereby informed that the Administrator is working on initiatives to meet the requirements of the Reconstruction Act, which include conducting investigations into the operations and finances of the business to recommend the most suitable resuscitation plan going forward. The Reconstruction Act sets out processes to be followed to engage with creditors and shareholders and present these findings, as well, in a later course, as a plan for the reconstruction of the company (the “Scheme of Reconstruction”),” Musvipe said.
Persistent operational hurdles had prevented BNC from meeting its financial obligations on time. Hence the company had to be subjected to reconstruction in May. This included outstanding debts to the Zimbabwean government. Consequently, the government issued a Reconstruction Order targeting Trojan Nickel Mine Limited (TNML), BNC’s wholly-owned subsidiary. These circumstances compelled the government to intervene through the Reconstruction Order, a formal process designed to stabilize the company and protect the interests of creditors.
“Due to protracted operational challenges, BNC could not timeously extinguish its debts, including those owed to the Government of Zimbabwe, which issued a Reconstruction Order against Trojan Nickel Mine, a wholly owned subsidiary of BNC. The Reconstruction Order, which took effect on 2 May 2024, was issued in terms of section 4 (1) of the Reconstruction of State-Indebted Insolvent Companies Act (Chapter 24:27) of Zimbabwe (the “Reconstruction Act”). Under section 4 (3) (a) as read with section 3 (1) (a) of the Reconstruction Act, the Reconstruction Order equally applies to BNC by association,” said Musvipe
The issuance of a Reconstruction Order placed Bindura Nickel Corporation (BNC) under formal administration, granting exclusive control of the company’s operations to Ms. Mutsa MJ Remba as the appointed Administrator.
Due to the complexities inherent in corporate reconstruction, a temporary halt of BNC securities trading became necessary. Under the Securities and Exchange (VFEX Listings Requirements) Rules and the Reconstruction Act, the VFEX Listings Committee suspended trading of BNC securities on May 6, 2024.
To facilitate the investigative and reporting processes mandated by the Reconstruction Act, BNC sought and was granted a waiver from the VFEX Listings Committee to postpone the publication of its 2024 Audited Financial Statements. This waiver was authorized under Section 9 of the VFEX Listing Rules.
“The Company applied for a waiver to publish its Financial Year 2024 Audited Financial Statements, based on section 9 of the VFEX Listing Rules, in order to allow investigations and reports undertaken in terms of the Reconstruction Act to be done. On 15 July 2024, the VFEX Listings Committee granted the waiver on the condition that the BNC Audited Financial Statements would be published by 31 December 2024,” Musvipe said.
The acting finance director added that shareholders will be informed that the Administrator will provide specific dates for the initial meetings of creditors and company members, as well as those of Trojan Nickel Mine Limited (TNML), in the subsequent notification.
