KCM Reaffirms Commitment to Settling Debts Under Court-Approved Payment Plan
Konkola Copper Mines (KCM) has assured that it is fully committed to meeting its obligations under the Scheme of Arrangement, a court-approved payment plan.
The company confirms that it has not defaulted on any payments to creditors and is adhering to the terms established by the court.
KCM has already made full payments to smaller creditors (Class I), those owed less than $1 million. For larger creditors (Class II), owed $1 million or more, KCM has paid 35% of the amounts due as a first tranche on a prorated basis, except in cases where creditors have filed disputes. The remaining payments to non-disputing creditors will be made in accordance with the Scheme of Arrangement.
A legal dispute with Copperbelt Energy Corporation (CEC) has arisen, as CEC challenges the court’s approval of the Scheme. Despite contesting the arrangement, CEC continues to demand payments under the same plan.
KCM has received legal advice indicating that all creditors are bound by the court’s ruling, and the Corporate Insolvency Act of 2017 prohibits preferential treatment of creditors within the same class.
The High Court has already rejected CEC’s request to be classified as a “PREFERENTIAL CREDITOR.” KCM remains committed to honoring payments to CEC, provided they withdraw their appeal.
If CEC fails to do so, other creditors may pursue alternative methods of payment, which would breach the terms of the Scheme.
On March 18, 2025, CEC sought legal action to seize KCM assets. However, the Court of Appeal intervened, halting further action and ordering the return of seized assets pending the resolution of the case.
KCM is focused on its recovery and is working to strengthen its financial position with the support of its major shareholder, Vedanta Resources.
The company remains dedicated to fulfilling its obligations and safeguarding its assets in compliance with the court’s ruling.
KCM was placed under provisional liquidation by ZCCM-IH on 21 May 2019, leading to the accumulation of debt from various creditors.
In response, KCM creditors proposed a debt compromise under the Creditor Scheme of Arrangement, which was overwhelmingly approved by a 99% vote of the creditors. The High Court officially approved the Scheme on 28 June 2024, with the Honorable Judge Kafunda issuing the ruling.
Under the Scheme, Class I creditors (owed less than $1 million) will be fully paid, while Class II creditors (owed $1 million or more) will receive partial payments, with the balance to be settled when KCM’s cash flow improves. KCM, supported by Vedanta, has provided $250 million in funding to facilitate these payments.
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