THE Lusaka High Court has granted an order to Postnet Zambia Limited sanctioning a scheme of payment arrangement to its creditors.
High Court Judge Sunday Nkonde further directed Postnet to file a copy of the scheme of arrangement with the concerned Registration of Companies and all concerned regulatory authorities to act on this order together with the scheme.
This was in a case where Postnet Zambia Limited had petitioned the Court to grant the company permission to convene a meeting with its creditors in order to strategise how monies owed Western Union Zambia and 93
others would be paid back without liquidating the company.
The company has been faced with operational problems to sustain its business and was indebted to various creditors to the sum of K13,532,042.00 against the net assets worth K4,652,227.00 as at December 31, 2015.
Further, that it was unable to fully settle the debts due to each one of its creditors and if the petitioner went into liquidation, the available assets would only be sufficient to partly settle debts of preferential creditors who were also the minority class of the Company’s creditors.
Justice Nkonde said he was satisfied that the relevant statutory requirements have been complied with and that the classes of creditors were properly identified.
He dismissed all the objections by some respondents who contended that the scheme of arrangement infringed on her rights as an employee because it would mean her forfeiting her entitlement amounting to K45,000.
“I have looked at the objections raised and I find that they are not maintainable at law,” He said.
Judge Nkonde said what was required is for the petitioners to be in substantial compliance with the requirements of the law as set out in Section 234(2) of the companies act which I find the petitioner did as evidenced by the petitioner.