KCM Meets Creditors to Discuss Debt Settlement Plan
Konkola Copper Mines (KCM), through the Provisional Liquidator, held a meeting with its creditors in Lusaka yesterday to consider a scheme of arrangement for settling the debt owed to them.
This followed an ex parte order granted to KCM by the Lusaka High Court to convene a meeting of creditors to discuss the scheme of arrangement.
During the event, Provisional Liquidator Celine Meena Nair explained that the meeting was for class 1 scheme creditors, with a class 2 creditors meeting scheduled for May 30, 2024. Ms. Nair stated that the scheme creditors had been grouped into class 1 and class 2 based on the order of their claims.
She emphasized that the primary purpose of the meeting was to seek creditors’ approval of the scheme, which requires a 75 percent approval threshold or at least 75 percent in value from both class 1 and class 2 scheme creditors.
Achieving this threshold would mark the beginning of a transformation journey for KCM, moving it from its current state of liquidation to becoming a viable entity.
Ms. Nair highlighted the importance of the creditors’ vote, as it would shape the company’s future trajectory and its impact on the country. Following the conclusion of both class 1 and class 2 meetings, a report on the outcomes would be submitted to the High Court.
She noted that if the scheme is not approved or sanctioned, the company would proceed into final liquidation through the winding up of the business.
