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The Lusaka High Court has directed Konkola Copper Mines (KCM) to make a 40 percent down payment—equivalent to US$11.8 million—of its US$29.6 million debt to Copperbelt Energy Corporation (CEC) within 10 days.
Presiding Judge Charles Kafunda ruled that CEC, listed as a Class 2 creditor in the Creditors Schemes of Arrangement, is entitled to the payment despite ongoing appeals.
He emphasized that the appeal does not justify withholding the debt.
“The restriction of suit by the Deed of Release and Waiver does not apply to appeals arising from challenges to the approval of a scheme. An affected creditor has a statutory right to object and a constitutional right to appeal,” stated Judge Kafunda.
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The court clarified that no stay of execution had been granted by the Court of Appeal, making the original ruling enforceable.
CEC Managing Director, Owen Silavwe, had previously sought an amicable resolution in September 2024, but KCM’s management cited the pending appeal as grounds for non-payment.
Judge Kafunda dismissed this defense, noting that the appeal only concerns procedural issues and does not question the debt’s validity.
He condemned KCM for using the legal process as a delaying tactic, affirming CEC’s right to the first installment under the approved scheme.
The ruling, delivered on December 2, 2024, reaffirms the court’s position that creditors’ rights must be upheld.
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