By SYLVESTER MWALE –
KABWE Industrial Fabrics Company (KIFCO), the single largest employer in Central Province has gone under liquidation after failing to clear K17.4 million owed to Development Bank of Zambia (DBZ).
The polythene manufacturing company has struggled for survival over the years, with employees going for more than three years without pay while management failed to meet legal obligations.
Receiver Agness Ngoma, who is receiving the assets and liabilities on behalf of the DBZ, told journalists in Kabwe during the week that two investors had expressed interest to buy the assets and premises of the defunct firm.
Ms Ngoma said one company which she did not mention was interested to
take over the buildings located at plot number 1582, Buntungwa Street
in town, while another one was interested to buy the assets.
“As you know in the receivership, the receiver recovers money (in this case) for the bank that is owed and that is exactly what I am doing here, I am trying to recover the money for DBZ and that involves selling the assets.
“The process of sale has started. We have found two buyers – one buyer for the equipment and another one for the land and buildings…This is a legal process and the workers will be taken care of without doubt,” she said.
The receiver has also scheduled an auction sale this weekend where most of the properties that have been seized will be sold.
KIFCO obtained a K17,417,193 loan around 2011 from the DBZ, of which 50 per cent was later restructured to support the turnaround efforts in 2014 after the company could not manage to clear the debt.
The outstanding loan balance on the KIFCO account as at January 31, 2015, was K9,398,533.03 and K1,290,690.24 on the long-term loan and working capital facility, respectively.
Further, K8.7 million was being held in the subscription for shares account pending the business valuation.
Meanwhile, Kabwe Mayor Prince Chileshe who visited scene said the local authority would take interest in the matter to ensure that the interests of the 140 employees were taken care of during the process of liquidation.
There was confusion earlier in the week when police rushed to the KIFCO premises to block the sale of equipment after word went round that there were some people taking property out of the plant.