ZIMASCO Wins Reprieve Against Corporate Takeover B...

ZIMASCO Wins Reprieve Against Corporate Takeover Bid

ZimNow Reporter

A recent High Court ruling by Justice Faith Mushure has provided ZIMASCO (Pvt) Ltd, a well-known ferrochrome producer, with temporary protection against a corporate rescue attempt initiated by the controversial lawyer Wilson Manase.

The court issued an interdict following an application submitted by ZIMASCO (Pvt) Ltd. This interdict prevents Manase from acting as the company's corporate rescue practitioner for the time being.

ZIMASCO's management expressed surprise at Manase's attempts to assume this role, stating that they were based on a court order issued against SINOSTEEL ZIMASCO (Pvt) Ltd. ZIMASCO firmly maintains that it has no connection or relationship whatsoever with Sinosteel ZIMASCO (Pvt) Ltd.

Sources within ZIMASCO (Pvt) Ltd have indicated that the company is not experiencing financial distress and that Avim Investments (Pvt) Ltd is not among its creditors. They further contend that the documents utilized by Avim Investments (Pvt) Ltd, a company reportedly linked to Shephard Tundiya, to obtain the court order against Sinosteel ZIMASCO (Pvt) Ltd are irrelevant to ZIMASCO.

The High Court's interdict is a provisional measure that will remain in effect until a later date when the court will hear ZIMASCO's application for a formal declaration confirming that it is distinct from ZIMASCO SINOSTEEL (Pvt) Ltd.

Additionally, ZIMASCO plans to seek the annulment of the original court order, arguing that they were never served with it and that they possess a valid defense against its provisions.

In related developments, ZIMASCO lodged a formal complaint with the Judicial Service Commission (JSC) last week against High Court Justice Joel Mambara, alleging "judicial impropriety" and accusing him of being complicit in a "fraudulent scheme."

The complaint, detailed in a letter from ZIMASCO CEO John Musekiwa, revolves around a corporate rescue application filed by Avim Investments (Private) Limited targeting SINOSTEEL ZIMASCO (Private) Limited, which ZIMASCO asserts is a separate entity. ZIMASCO claims that Justice Mambara granted a corporate rescue order that encompassed their assets on March 12, 2025, despite the fact that the application was never served upon them.

ZIMASCO further alleges that a subsequent chamber application by Avim Investments to rectify the order and include ZIMASCO (Pvt) Ltd was also not served on them, a violation of established court procedures.

The company contends that this second application was urgently brought before and approved by Justice Mambara within a mere three hours of its filing, allegedly at the insistence of Avim's legal representatives.

ZIMASCO further argues that these actions constitute procedural irregularities, as the initial order lacked a prior order for debt payment, and the subsequent correction application improperly sought to add a new party without proper notification and service.

Based on these events, ZIMASCO argues that Justice Mambara's actions were "wilful," implying his "active participation" in a fraudulent scheme orchestrated by Avim Investments and their legal team to unlawfully seize control of ZIMASCO's assets. The company also raised concerns regarding the case allocation process and the swiftness with which the orders were granted, suggesting that Justice Mambara's involvement indicates his complicity in the alleged fraud.