Cottco collapses

The Cotton Company of Zimbabwe has applied to be placed under judicial management as the company has failed to turn around its operations even after a capital injection from the sale of its Seed Co stake.

Cottco made the application yesterday through company secretary Pious Manamike who said the business was technically insolvent and this could trigger foreclosure at the instigation of creditors.

According to the application, the company's board believes there is reasonable probability that if Cottco is placed under judicial management, it will be enabled to pay its creditors and meet other obligations.

Group operations have been over the years affected by unfavourable lint prices on the international market.