By A Correspondent| Fossil Mines has been ousted as the major shareholder in Khaya Cement following a crucial creditors’ meeting held on Wednesday, marking a significant step in the company’s efforts to recover from financial distress.
Khaya Cement has faced mounting challenges since being placed under restrictive measures by the United States government. These sanctions led to the drying up of credit lines and the withdrawal of key financial backers, plunging the cement manufacturer into a crisis.
At Wednesday’s meeting, stakeholders approved a roadmap towards reviving the company, which was placed under corporate rescue in December last year. The plan, presented by corporate rescue practitioner Mr. Bulisa Mbano, aims to resuscitate operations and restore confidence among investors and creditors.
Hope for Recovery
Speaking after the meeting, Mr. Mbano expressed optimism about the company’s future, emphasizing that the resolutions adopted must now be implemented effectively.
“The meeting went on well, and it is our hope that the resolutions for the rescue plan will be implemented according to our timelines for the benefit of investors and creditors,” he said.
He underscored the importance of continued engagement with creditors as a critical step toward Khaya Cement’s revival.
“It is our hope that what we have managed to gather today will set the tone for the entity’s recovery. Of course, there are challenges, but meaningful engagements are key to addressing real issues and finding solutions,” he added.
Path to Stability
The high turnout of creditors and investors at the meeting reflected strong interest in safeguarding Zimbabwe’s cement supply and ensuring self-reliance in the sector. The approved plan is expected to provide a clear path to stabilizing operations and securing the company’s long-term viability.
In 2022, Fossil Mines acquired a 76.45% stake in the then Lafarge Cement Zimbabwe Limited from Associated International Cement Limited, a member of the Holcim Group. The company was later rebranded as Khaya Cement.
However, shortly after the acquisition, the United States Office of Foreign Assets Control (OFAC) imposed sanctions on Fossil Agro, Fossil Contracting, and the company’s owner, Obey Chimuka. These measures severely restricted the company’s ability to access international financial support, contributing to its current struggles.