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The requirements for Corporate Rescue in Zimbabwe

The High Court in Zimbabwe Diamond and Allied Minerals Mines Workers Union & Others v Zimbabwe German Graphite Mines (Pvt) Ltd & Others 2021 (1) ZLR 138 (H) set out the requirements for corporate rescue in Zimbabwe as follows:

• The company must be financially distressed in that it must have failed to pay any account in terms of an obligation, public regulation or contract;

• It is just and equitable that a company be placed under a rescue to facilitate the rehabilitation of the company by providing for temporary supervision of the company; its protection by a moratorium on the rights of claimants and the development and implementation of a plan to restructure its affairs to ensure its continued existence; and

• There are reasonable prospects of rescue that results in a better return for the company’s creditors and shareholders than would result from liquidation.