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Insolvency & Business Rescue in Zimbabwe

The law on insolvency and business rescue in Zimbabwe is the Insolvency Act [Chapter 6:07] which was enacted in June 2018. The legislature introduced business rescue in Zimbabwe as a much more flexible alternative to judicial management particularly for financially distressed companies. The Supreme Court in Metallon Gold Zimbabwe (Pvt) Ltd v Shatirwa Investments (Pvt) Ltd & Others 2021 (2) ZLR 193 (S) 200 held that:

“The concept of corporate rescue is in line with modern trends of corporate rescue regimes. Firstly, it attempts to secure and balance the competing interests of creditors, shareholders and employees. Secondly, it envisages a shift away from having regard to creditor’s interests only. Thirdly, it is predicated on the belief that to preserve a business, the experience and skills of employees might in the end provide to be a better option for creditors. Lastly, it enables creditors to secure a better recovery of their debts from debtors.