Lupepe, Madondo clash over Merlin

Delma Lupepe, the owner of Merlin Limited, could be headed for a bruising legal fight with the company's judicial manager, Cecil Madondo, for attempting to bring investors into the textile business through the back door.

Lupepe took over Merlin in 2004 through his investment vehicle, Maydeep Investments (Private) Limited, after the troubled textiles giant was discharged from judicial management.

But in December 2011, the company relapsed into judicial management for the second time inside a decade, with the Bulawayo High Court appointing Madondo of Tudor House Consultants to lead the process.

Madondo had earlier been credited for turning around Merlin after it slipped into provisional liquidation in 2002.

At least US$25 million is needed in fresh capital to bring the company back to life, spread over a period of five to 10 years.