City of Bulawayo lodges claim against OK Zimbabwe

The City of Bulawayo has successfully lodged a claim of US$3 293.02 against retail giant OK Zimbabwe for unpaid water charges and business licence fees, as the company undergoes voluntary corporate rescue proceedings.

The claim was presented during the first creditors' and members' meeting held in Harare in March, marking a key milestone in the restructuring process of the retailer.

OK Zimbabwe is currently under voluntary corporate rescue in terms of the Insolvency Act, following a board resolution passed on 23 February to initiate proceedings aimed at stabilising its operations and addressing outstanding obligations.

The company has been placed under the supervision of corporate rescue practitioner Bulisa Mbano of Grant Thornton Chartered Accountants (Zimbabwe), who is overseeing the restructuring process.

According to council documents, the City of Bulawayo deployed officials to Harare to formally register its claim, citing concerns over potential revenue losses and the need to safeguard municipal income streams.

"The Council's claim was successfully lodged and provisionally accepted by the Master of the High Court," reads part of the Finance and Development Committee report.

The development ensures the local authority is formally recognised among creditors as the corporate rescue process continues, with a second creditors' meeting expected to be convened at a later date.

The proceedings form part of broader efforts to restructure OK Zimbabwe and restore financial stability while settling outstanding debts to creditors.