HARARE – Metro Peech & Browne, one of the biggest wholesale companies in the country has been placed under corporate rescue due to debts that have resulted in manufacturers refusing to supply it with goods.
The rescue plan is with effect from August 31, 2023, and it is in terms of the Insolvency Act Chapter 6:07.
The situation is so dire that the company has closed six branches which are Rusape, Marondera, Mutare, Murehwa, Shurugwi, and Mbare. Creditors are also withholding the supply of basic goods such as sugar and soft drinks.
Dr Oliver Mtasa of Crowe Advisory who has been appointed the company Corporate Rescue Practioner confirmed the development but told The Mirror that he is yet to establish the size of the debt. The rescue plan was put in place after the proprietors, Miles Peech and Barry Browne approached the Master of the High Court of Zimbabwe to file for insolvency.
The moratorium seen by The Mirror reads: “During the Corporate Rescue proceedings as provided by Section 126 of the Act, no legal proceeding, including enforcement action against the Company or in relation to any property belonging to the Company, or lawfully in its possession, may be commenced or proceeded with in any form without the authority of the Corporate Rescue Practitioner.”
Mtasa said he is yet to establish whether it was mismanagement or economic shocks that dragged the company into the financial doldrums. He said he could only give finer details after holding a meeting with stakeholders scheduled for September 20, 2023.
“This meeting is for proof of claims, an overview of corporate rescue proceedings, a statement by the Master of High Court about the reasonable prospect of rescuing the company and appointment of a committee of creditors. We are supposed to finish our work in 90 days or at worst in 180 days,” said Mtasa
