Vedanta logo

VEDL - Vedanta News Story

₹137.05 5.3  4.0%

Last Trade - 11:26am

Sector
Basic Materials
Size
Large Cap
Market Cap £5.21bn
Enterprise Value £9.21bn
Revenue £9.02bn
Position in Universe 55th / 3011

Vedanta to challenge winding up of Zambian business in court

Tue 11th June, 2019 7:10am
LUSAKA, June 11 (Reuters) - Vedanta Resources  VDAN.NS  on
Tuesday plans to challenge the appointment of a provisional
liquidator and the intended winding up of its Zambian business
without the chance to be heard through lawyers of its choice,
documents filed in court show. 
    According to a notice filed in court on June 6, Vedanta
wants to be represented by lawyers Nchito & Nchito and not those
appointed by the provisional liquidator. 
    A court hearing following Zambia's decision to name the
provisional liquidator to run Vedanta's Konkola Copper Mines
(KCM) business was adjourned until Tuesday without tackling the
company's demands to be involved, Vedanta said last
week. L8N23B3QH  
    Vedanta Resources, part-owner of the Mumbai-listed Vedanta
group of companies  VDAN.NS , is KCM's majority shareholder, 
while Zambian state mining company ZCCM-IH  ZCCM.LZ  holds a
stake of about 20%. 
    Vedanta wants the court to determine "whether a confirmation
of the provisional liquidator and the compulsory liquidation can
be conducted without the company or its directors being heard
through lawyers of their choice," the notice reads. 
    Vedanta also wants the court to determine whether the
lawyers appointed by the provisional liquidator on its behalf
can appear in court to represent it. 
    "It is illogical to expect that lawyers appointed by the
provisional liquidator can oppose his appointment and present an
independent case in opposition of the liquidation," it says. 
    Zambia's decision to name a provisional liquidator to run
KCM, one of the country's biggest employers, has unnerved
international miners concerned about rising resource nationalism
in Zambia and neighbouring countries. 
    The Zambian government says KCM has breached the terms of
its licence.  urn:newsml:reuters.com:*:nL8N23715G 

 (Reporting by Chris Mfula; Editing by Tom Hogue)
 ((chris.mfula@thomsonreuters.com;))
© Stockopedia 2020, Refinitiv, Share Data Services.
This site cannot substitute for professional investment advice or independent factual verification. To use it, you must accept our Terms of Use, Privacy and Disclaimer policies.