David Whitehead creditors to meet

DAVID Whitehead Textiles (DWT)’s creditors will meet on September 27 to discuss the manufacturer’s revival strategy.
The company resumed operations at its Chegutu factory in January this year after receiving a $2 million bailout from the Reserve Bank of Zimbabwe.
The facility was secured from the Zimbabwe Asset Management Company, a special purpose vehicle to buy secured bad debt from the banking sector, and has a tenure of 12 months.
The company had ceased operations about two years ago due to working capital constraints.
“Notice is hereby given that a meeting of creditors and members of David Whitehead Textiles Limited (under final judicial management) will be held at 11 am on Thursday 27th September at the ZESA National Training Centre, to transact the following business: to receive an update on company resuscitation and proposed financial position reconstruction,” said Knowledge Hofisi, DWT’s judicial manager in the latest Government Gazette.
After resuming operations, DWT rehired about 120 workers who are working on shifts. As of April 30, DWT was said to owe various creditors about $13 million, including workers’ outstanding wages.
The $2 million funds from the facility have been used for critical spares, production materials and other operational expenses.
It is projected that the resumption of operations would create employment and help to pay salaries and wages for workers.
This will also raise hopes for creditors that they would eventually be paid their dues.
The spinoffs are expected to be felt in the communities in Chegutu and Kadoma.
DWT has been under judicial management since 2006.
A new investor came on board in 2008 promising to inject millions of dollars. By the time the investor exited in 2010, the textile giant had lost more than what was injected.
DWT has also seen a turnover of judicial managers.
Before Hofisi, Cecil Madondo and Winsley Militala were thrust in the hot seat, but left before the company could be revived.
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