Bloomberg News

RioZim CEO ‘Working Night and Day’ to Reduce Miner’s Debt Burden

February 22, 2012

Feb. 22 (Bloomberg) -- RioZim Ltd., a Zimbabwe nickel and coal producer, is working to find funds to pay the company’s debt, said Chief Executive Officer Josephat “Josh” Sachikonye.

“Significant progress has been made in raising the $57 million needed to solve the company’s debt,” Sachikonye said in a telephone interview from the Harare-based miner’s headquarters today. He didn’t give further details. RioZim separated from Rio Tinto Plc in 2004, according to its website.

The Zimbabwe Independent newspaper earlier reported a widening rift between RioZim and its creditor banks. An investor the newspaper didn’t identify had agreed to a $10 million investment to retire part of the loan, with the balance being underwritten by a foreign bank, the Independent said Feb. 9.

RioZim’s creditors have applied to have the company placed under judicial management, the newspaper said. Sachikonye declined to comment on the application, saying only that he is “working day and night to resolve the company’s difficulties.”

Under Zimbabwean law, financially troubled companies can be placed under the management of a court-appointed CEO who is given the job of returning them to profit.

--Editors: John Viljoen, Alex Devine

To contact the reporter on this story: Brian Latham in Harare at blatham@bloomberg.net.

To contact the editor responsible for this story: Antony Sguazzin in Johannesburg at asguazzin@bloomberg.net.


Best LBO Ever
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus