Zambian court denies Vedanta participation in liquidation proceedings against its subsidiaries

Published: Jun 21, 2019 13:51

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A Lusaka court on Thursday rejected Vedanta's request to participate in the liquidation proceedings. After that, Vedanta said that urgent measures will be taken to protect its assets in Zambia, while opening up dialogue with the government, while reserving the right to seek international arbitration if necessary. The company also believes that the Zambian government has no reasonable reason to liquidate Konkola (KCM), a subsidiary of Vedanta, and that the appointment of a temporary liquidator would increase the financial pressure on KCM and put the work of KCM employees at risk.

SMM6, 21 March: a court in Lusaka on Thursday rejected Vedanta's request to participate in the liquidation proceedings.

After that, Vedanta said that urgent measures will be taken to protect its assets in Zambia, while opening up dialogue with the government, while reserving the right to seek international arbitration if necessary.

The company also believes that the Zambian government has no reasonable reason to liquidate Konkola (KCM), a subsidiary of Vedanta, and that the appointment of a temporary liquidator would increase the financial pressure on KCM and put the work of KCM employees at risk.

KCM is Zambia's largest copper miner, creating about 13000 jobs. "correlation Analysis-[Copper impact] the President of Zambia is determined to close the Vedanta subsidiary and carry out tax reform to the end

And the company added that it questioned any attempt to sell its KCM business.

The statement is mainly in response to previous comments by Zambian President Edgar Lungu, who expects to complete negotiations with the buyer of Vedanta subsidiary Konkola (KCM) within this month. "related analysis-President of Zambia: negotiations are expected to be completed with buyers of the Vedanta subsidiary within this month

With regard to the liquidation proceedings against KCM the Court will also hold a hearing on 4 July at the request of Vedanta and KCM.

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