Zimbabwe’s once expansive textile giant, David Whitehead Textiles Limited (DWTL), has begun the process to move out of judicial management, 16 years after it entered administration on the brink of insolvency.
The latest development was revealed by DWTL corporate rescue practitioner, Knowledge Hofisi, in a notice of termination.
Hofisi said the company was ready to stand on its own.
“It is hereby notified in terms of…Insolvency Act, the corporate rescue practitioner has concluded his brief and there are no longer reasonable grounds to believe that the company is financially distressed,” read part of the notice.
“Accordingly, the proceedings are terminated upon the filing of this notice. All those who are an affected person…and wish to make an objection nor representation in regard of this notice shall lodge an objection or representation.”
DWTL used to be the largest textile manufacturer in Zimbabwe employing over 5 000 people.
At its peak, it used to produce 20m metres of fabrics per year.
Its removal of the company from Court sanctioned administration is a result of a new shareholder, Agri Value Chain Zimbabwe (AVC) , which has interests in cotton farming, ginning and edible oils in Zimbabwe and in the region, who bought a 51% stake in DWTL in 2019 for ZWL$5.4bn.
The majority shareholding was held by Elgate Holdings, which failed to fully pay for the shares more than a decade after signing the agreement with DWTL. Elgate only paid ZWL$1.6m. The High Court sanctioned the termination of the agreement in 2019.