Konkola Copper Mines (KCM) says it is scrutinizing a Lusaka High Court judgment ordering it to pay nearly US$12 million to its former power supplier, Copperbelt Energy Corporation (CEC).
In a statement issued Monday, KCM acknowledged the ruling and stated its commitment to adhering to the Scheme of Arrangement sanctioned by the High Court in June 2024.
The statement outlined KCM’s ongoing efforts to restructure its debt and fulfill its obligations to the scheme creditors as classified thereunder.
Class 1 creditors are owed amounts below US$1 million while Class 2 creditors are owed more than US$1 million each.
KCM also reiterated its dedication to engaging with stakeholders, including CEC, to achieve a “mutually beneficial outcome.”
KCM should have by now paid 40% of $29.6 million it owes CEC.
The High Court’s order emanated from KCM’s failure to meet its obligations to CEC, a Class 2 creditor, under the Scheme of Arrangement.
Delivering the ruling December 2, High Court Judge Charles Kafunda clarified that the Deed of Release and Waiver does not bar creditors from appealing the approval of a scheme.
He stated that statutory and constitutional rights allow affected creditors to object or appeal such approvals.
Judge Kafunda noted that KCM had failed to pay the required portion of its admitted debt to CEC by the bar date of August 30, without obtaining an extension.
While other Class 2 creditors have received payments, CEC has yet to be compensated.
CEC’s Chief Financial Officer, Mutale Mukuka, revealed that attempts to resolve the issue administratively had been unsuccessful.
KCM cited a pending appeal in the Court of Appeal as the reason for non-payment, a justification the judge dismissed.
Judge Kafunda ruled that the appeal does not contest KCM’s liability to CEC and that an appeal does not automatically stay a court judgment.
The court ordered KCM to pay the first installment of the admitted debt to CEC within 10 days of the ruling and awarded costs to CEC, to be paid by KCM. UPND Official in Nakonde Seeks K4 Million from the State
