By Darius Choonya
The Lusaka High Court has ordered the seizure of goods, chattels, and other property belonging to Konkola Copper Mines (KCM) valued at K38.9 million.
This follows KCM’s failure to pay Copperbelt Energy Corporation PLC (CEC) a debt of $11.84 million (K38.9 million at the time of the order) under the creditors’ scheme of arrangement, which is part of a $29.6 million debt.
According to a writ of fieri facias issued to the Sheriffs of Zambia, the court had ordered KCM to pay CEC the outstanding amount on December 2, 2024.
CEC petitioned the Lusaka High Court to issue an enforcement order compelling KCM to settle the first installment of the $29.6 million debt.
In an affidavit filed before the court in 2024, CEC Chief Financial Officer Mutale Mukuka stated that CEC was classified as a Class Two creditor. Despite KCM beginning to pay 40% of the admitted debt to other Class Two creditors, Mr. Mukuka alleged that CEC was excluded from these payments.
CEC’s claim of $29,609,678 arose from a scheme of arrangement approved by the court in 2024.
This legal dispute follows a 2019 petition by ZCCM-IH seeking to wind up KCM. In June 2024, High Court Judge Charles Kafunda sanctioned the scheme of arrangement under Zambia’s Corporate Insolvency Act.
