The High Court has barred RioZim Limited, currently under corporate rescue, from selling its mines and other key assets as a legal dispute with workers continues. Justice Regis Dembure rejected RioZim’s appeal against an earlier order blocking asset sales, ruling the company had no legal grounds to proceed. The judge emphasized that once a firm enters corporate rescue, it cannot sell assets or restructure without court oversight, citing the Metallon Gold precedent.
RioZim’s lawyer argued that the board should retain decision-making power during the transition, but the court sided with the workers’ union, ordering RioZim to pay the union's legal costs. The company owes its employees over US$37 million in wages and benefits, and a recent arbitration award in favor of more than 200 workers remains unenforceable while the rescue process is ongoing. Justice Catherine Bachi Mzawazi explained that all lawsuits are paused under corporate rescue, a process intended to give distressed companies a chance to recover.
RioZim’s lawyer argued that the board should retain decision-making power during the transition, but the court sided with the workers’ union, ordering RioZim to pay the union's legal costs. The company owes its employees over US$37 million in wages and benefits, and a recent arbitration award in favor of more than 200 workers remains unenforceable while the rescue process is ongoing. Justice Catherine Bachi Mzawazi explained that all lawsuits are paused under corporate rescue, a process intended to give distressed companies a chance to recover.
