DAVID Whitehead Textiles (DWT) judicial manager, Knowledge Hofisi, has said that the company intends to “immediately” restart operations at Chegutu factory following the acquisition of the company’s majority shareholding by Agri Value Chain Zimbabwe (AVCZ). The company has had several years of intermittent operations.
Reports suggest that electricity was restored at the Chegutu factory and some raw materials have already been procured in preparation for the resumption of operations.
In a report filed at the High Court early this week, Hofisi revealed that two crucial meetings for creditors and shareholders are expected to take place on July 15 and 16 at which he will present audited financial statements while AVCZ will outline its rescue plan through a Scheme of Arrangement. Hofisi said:
The judicial manager is confident that AVCZ has both financial capacity and technical expertise to revive DWT operations as it has a significant presence in Zimbabwe, Malawi and Zambia where it is carrying out cotton value activities.
In line with the Government’s vision of reviving the economy, the judicial manager came to the realisation that DWTL is an integral part of the cotton value chain in Zimbabwe.
A fully functional DWT is an imperative in creating much needed employment and providing support in various other ways to local communities.
DWT used to produce about 20 million metres of fabric per year while directly employing 3 000 workers and thousands in down and upstream industries.
Recently, Hofisi was under fire for selling the company’s shares without consulting shareholders and creditors.
More: The Herald