High court stops KCM provisional liquidator from selling assets, compromising with creditors

High court stops KCM provisional liquidator from selling assets, compromising with creditors

The Lusaka High Court has cut out most of the powers of KCM provisional liquidator Milingo Lungu until the court decides whether KCM should be wound up or not.

Milingo Lungu was appointed as a provisional liquidator to wind up KCM during an ex-parte court hearing, that is, without other interested parties being given a chance to state their case.

But now Judge Bobo Banda has stayed (clipped) almost all the important powers of the provisional liquidator until the court makes a final decision on the liquidation of KCM.

Among the powers that have been taken away are from Milingo is the power ‘to make any compromises or arrangements with [KCM] creditors.’

The court has also forbidden the provisional liquidator from making ‘any agreements on all questions in any way relating to or affecting KCM or its assets’.

Milingo Lungu, the provisional liquidator has also lost the power to sell or dispose of buildings, cars, machinery and other any other property belonging to KCM.

The court has set 4 July 2019 as the date on which all parties, the provisional liquidator and his team and the genuine owners of KCM will be heard together in court.

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