Maamba Collieries Ltd updates on arbitration against ZESCO

NAVA Ltd's step-down down subsidiary, Maamba Collieries Limited (MCL), has been pursuing International Arbitration against Zambia Electricity Supply Corporation Limited (ZESCO) for outstanding receivables.

The Company has announced that The Arbitral Tribunal has issued a "Consent Award" settling all the claims and confirming the Payment Plan to liquidate the outstanding arrears following an agreement reached between MCL and ZESCO.

As per the Consent Award, ZESCO shall, by August 2023, discharge the outstanding and overdue arrears aggregating to about US$ 518 million as at 31st October 2022 after adjusting for a cash discount of US$ 60 Million, extended by MCL. As part of the Award, ZESCO is mandated to discharge the VAT liability of about US$ 70 Million forming part of the total arrears as above, directly to the Government.

The Consent Award is an international award for all purposes and validates the long-standing arrears from ZESCO. The Settlement has been reached in an amicable manner to address the overdue power purchase bills while the monthly payments for power sales from May 2022 are being realized in full.

Shares of Nava Limited was last trading in BSE at Rs. 201.45 as compared to the previous close of Rs. 185.95. The total number of shares traded during the day was 124941 in over 4015 trades.

The stock hit an intraday high of Rs. 209.80 and intraday low of 182.25. The net turnover during the day was Rs. 24929207.00.

Source : Equity Bulls

Keywords

Nava INE725A01022 MambaCollieries Arbitration ZESCO ConsentAward