The struggling national airline Air Zimbabwe is now facing possible liquidation after the High Court placed it under judicial management.This follows a court application by the parastatal’s employees represented by Mr Caleb Mucheche of Matsikidze and Mucheche Legal Practitioners.The application was made in terms of Section 299(1) as read with Section 207(1) of the Companies Act (Chapter 24:03) which provides for creditors to make an application for a struggling company to be placed under judicial management.
Air Zimbabwe Holdings, Air Zimbabwe and the Master of the High Court were cited as first, second and third respondents respectively while National Airways Workers’ Union and Air Transport Union were the applicants. In granting the order last Friday, the court considered that Air Zimbabwe had acknowledged it was facing viability challenges. Last week, AirZim chief executive officer Mr Innocent Mavhunga wrote to President Mugabe informing him of the viability constraints.The court appointed Mr Shepherd Chimutanda of STC International Certified Chartered Accountants provisional judicial manager.The court order, which will soon be published in a Government Gazette, automatically transfers all powers to Mr Chimutanda and bars the AirZim board, led by Mr Jonathan Kadzura, from interfering with the parastatal’s affairs.The Master of the High Court granted a certificate for the provisional judicial management order with costs.“I certify that due security has been found for the payment of all fees and charges necessary for the prosecution and all the provisional judicial management proceedings in the above matter until a judicial manager is appointed, and if no provisional judicial manager is appointed, all fees and charges necessary for the discharge of the applicant from judicial management," said the Master of High Court. "I also confirm that Shepherd Chimutanda is not disqualified from taking up appointment as provisional judicial manager in terms of the Companies Act, and that I have no objection to his appointment as such."In an interview yesterday, Mr Mucheche said the order was long overdue adding that it was a prelude to AirZim's liquidation
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