A dispute emerged over a proposed restructuring transaction involving Murowa Diamonds, with creditors raising strong objections over what they describe as a potentially damaging financial arrangement.
In a formal letter dated 9 April 2026, legal representatives acting for employees and a creditor company expressed concern about a deal in which RioZim Limited intends to transfer its 22.2% shareholding in Murowa, along with certain mining claims, in exchange for reducing a debt owed to Murowa. The proposal reportedly values the transaction at about USD28.44 million, while a remaining balance of approximately USD32.33 million would be written off.
The creditors argue that the write-off would significantly weaken Murowa’s financial position. “The debt proposed to be written off is plainly a substantial asset of the company,” the letter states, warning that such a move could erode the company’s balance sheet and undermine its ability to meet obligations, including unpaid salaries and dues owed to employees.
Employees and Carpae Investments, identified as current creditors, claim they are owed substantial sums in arrears and benefits. They contend that reducing the recoverable debt in this manner may prejudice their chances of being paid. “Our clients are concerned that the write-off will materially diminish Murowa’s asset base and may prejudice its ability to pay its own creditors,” the letter reads.
The objection also raises governance concerns, pointing to overlapping directorships and shareholding links between Murowa and RioZim. According to the document, several directors serve on both entities, which creditors argue creates a “real risk” of conflicts of interest influencing decision-making.
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Legal issues had also been highlighted, with the creditors asserting that any such transaction must comply with corporate laws requiring directors to act in the best interests of the company and avoid conflicts. They further claim there has been insufficient disclosure to stakeholders and no evidence that creditor approvals have been obtained.
The creditors had demanded full transparency on the transaction, including valuation reports, board resolutions, and conflict-of-interest mitigation measures. They also called for a clear explanation of how the deal benefits Murowa and protects its creditors.
“Our clients object to the transaction as it relates to Murowa… unless and until Murowa has complied fully with the law, with due process, and with its duties to all its creditors,” the letter states.
They gave the company a deadline of 14 April 2026 to respond, warning that they reserve the right to take further action if their concerns are not addressed.
However , according to the source, Murowa has not yet responded to the concerns raised.
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