Hofisi appointed Telecel corporate rescue manager

Knowledge Hofisi of Aurifin Capital has been appointed corporate rescue manager for Telecel Zimbabwe to try and save the mobile network service provider from going under as it struggles against insolvency.

“It follows therefore that corporate rescue proceedings have commenced in terms of section 124(2)(b) of the Insolvency Act [Chapter 6:07],” reads a notice published in the Government Gazette of last week.

The move means that Telecel’s creditors will have to fight against the order or work out payment deals with the corporate rescue manager.

“It follows from the foregoing that no action or proceedings shall be proceeded with or commenced against the company except by leave of the court and subject to such terms as the court may impose,” the notice warns.

The corporate rescue decision follows an application filed at the High Court by Communication and Allied Service Workers Union secretary-general David Mhambare in October 2022 under Case H.C. 306/22.

Mhambare argued that Telecel’s position of US$1.5 billion in assets compared to local currency liabilities of $24 billion as of December 31, 2021 was not viable and the company would face liquidation if not rescued.

Knowledge Hofisi’s eight year run as corporate rescue manager for David Whitehead ended with a deed of settlement that resulted in the company being removed from judicial management as well as charges of fraud against Hofisi being withdrawn.

https://zimbabwenow.co.zw/articles/2946/textile-manufacturer-david-whitehead-textiles-set-for-revival

Hofisi had faced allegations of criminal abuse of his position through transfer of money from company accounts to two people who were not employees of DWT.

DWT is now set for revival after Agri Value Chain Zimbabwe bought 51% shareholding in 2019 then raising its stake to about 72% and pumping in US$20 million investment.