Zimbabwe rolls out corporate rescue strategy for distressed firms

By Stanley James, Business Editor

ZIMBABWE has adopted a corporate rescue strategy aimed to bail out financially distressed companies.

Firms facing imminent closure are now putting in place turn around strategies as opposed to being placed under judicial management structures or systems.

The corporate rescue strategy plan which is being administered by the officer for the Master of the High Court comes at a time when Zimbabwe is also focusing on policies to boost productivity.

Master of the High Court, Eldard Mutasa outlined the entire corporate rescue strategy.

“It is entirely an effective system in terms of the law whereby we are now having to focus on what can be done to rescue a company facing closure through focusing on several provisions of the law and in line with the second republic’s vision of embracing productivity in all sectors of the economy,” he said.

The corporate rescue strategy is also among other factors aimed at facilitating continuity of operations, while identifying potential investors or partners to inject fresh capital.

“There are several initiatives being put in place under the plan through its dictates formulated towards ensuring continuity and transparency in terms of future operations.”

Survival of the firms, according to the corporate rescue plan is also being rendered as an important element towards sustaining growth of industry and commerce.