THE Master of the High Court has granted coal producer Makomo Resources (Private) Limited’s request to be removed from corporate rescue, four years after it was placed under curatorship.
Makomo had been under corporate rescue since 2021, after being overwhelmed by creditor demands amounting to millions of United States dollars.
Chartered accounting firm Grant Thornton was appointed to steer the company back to financial stability.
As of January 31, 2025, Grant Thornton reported that Makomo had outstanding liabilities, including unproven claims amounting to ZiG13 530,06 and debts to trade creditors totaling US$3,25 million. Additionally, the company owed approximately US$2 million to product creditors, US$49,09 million and ZiG221 649,21 to related party creditors, and US$13,91 million to contingent creditors.
In a letter dated February 28, 2025, the Master of the High Court, through the Additional Master-Insolvency & Minors Division, Vusomuzi Gapara, approved the removal of Makomo from corporate rescue.
“The Master has considered your request for release from your mandate as corporate rescue practitioner for Makomo Resources (Private) Limited [under corporate rescue], following the notice you filed with us for the termination of corporate rescue proceedings in terms of Section 125(2)(b), as read with Section 134(2)(b)(ii) of the Insolvency Act [Chapter 6:07],” Gapara stated.
“From the report you attached, including the financials, we are of the opinion that the company is no longer in financial distress, as it now has a cleaner balance sheet and is trading normally and viably. The greater bulk of approved claims have been settled, and the few outstanding debts have been successfully restructured.
“This means that the company is no longer in financial distress, and there is no basis for keeping it under corporate rescue. In light of the foregoing, the request for release is hereby granted. You are accordingly released from your mandate.”
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However, Grant Thornton will retain some residual powers under Section 133 of the Insolvency Act.
This will enable the firm to attend to outstanding administrative tasks to ensure a seamless and orderly handover of the company’s assets and affairs to the new board and management.
Grant Thornton said in a statement this week that Makomo had “settled its obligations to creditors and restructured its financial position, ensuring that it is no longer in financial distress.
“We are pleased to announce that, effective February 27, 2025, the corporate rescue proceedings for Makomo Resources were officially concluded. With this transition, the board and management will fully regain control of the company’s operations upon completion of the ongoing handover process.”
