Nava Ltd more than halves its total liabilities to Rs 1,707 crore

Nava Ltd, the parent company of Maamba Collieries Ltd, on Monday announced that it has more than halved its liabilities to Rs 1,707 crore from Rs 3,998.57 crore as of December 1, 2022. This includes repayment of overdue principal instalments and other liabilities.

The settlement of arbitration dues from Zambia Electricity Supply Corporation Limited (Zesco) has contributed to an increase in the cash flow of the company. In December last year, a tribunal in London ordered Zesco to pay $518 million to MCL for outstanding receivables.

Zesco proposed to discharge $338 million by December 2023 and the rest $180 million by December 2024.

"To date, Zesco has made payments totalling $181 million against the award, including a recent payment of $60 million, adhering to its payment plan," the company said in a press release.

Moreover, MCL has also been receiving full payments for all energy sales from May 2022, including that from coal sales.

"We are immensely proud of the remarkable turnaround made by MCL. The successful resolution of the arbitration case and the substantial debt reduction are significant milestones in our journey towards the long-term success of the Maamba project. We are grateful to our shareholders, lenders, and employees for their unwavering support throughout this period, said Ashwin Devineni, chief executive officer (CEO) of Nava Limited.

"With the loans of MCL now being current, MCL is eager to engage with its Lenders to discuss the way forward, including potential distributions to sponsors," the company said.