|David Whitehead out of judicial management|
|Thursday, 10 March 2011 22:06|
TEXTILE firm David Whitehead is out of judicial management after the High Court failed to confirm the final order.
The Master of the High Court Mr Charles Nyatanga confirmed yesterday that the period for judicial management had lapsed and there was no final order granted in that regard.
This effectively means that the company is now back in the hands of its shareholders.
DW was placed under the judicial management of Mr Winseley Militala in December last year on provisional basis and the process had a return date on March 2 this year.
"This is when the order would have been extended. However, the provisional order was not extended by the High Court and this means the shareholders have assumed control of the firm," said Mr Nyatanga in an interview.
DW creditors and shareholders who met on February 23 had agreed that the period for the judicial management be extended indefinitely to allow Mr Militala to prepare his full report on DW affairs. Mr Militala had presented his preliminary report. No comment could be immediately obtained from Mr Militala.
David Whitehead was first put under the judicial management of Mr Cecil Madondo in May 2005 before the management order was cancelled in May 2008.
The former blue chip company, which de-listed from the Zimbabwe Stock Exchange in January last year, has of late been struggling due to an unsustainable wage bill, continuous breakdown of machinery, endless labour disputes among other challenges.
It used to be the largest textile manufacturing company in Zimbabwe, employing about 3 000 people.
Between 1950 and 2000 DW expanded rapidly to become the largest textile company in the country.
It was internationally renowned for its quality and gained a fine reputation both locally and in export markets.
Prior to 2002 the company was part of Lonrho plc, a large conglomerate operating throughout Africa.