KCM: Court of Appeal stays execution of judgement on CEC as preferential creditor, refers matter to Supreme Court

The Court of Appeal has allowed Konkola Copper Mines (KCM) to argue its case before the Supreme Court and has stayed the execution of its earlier judgment that declared Copperbelt Energy Corporation (CEC) a preferential creditor of the mining firm.

The Court of Appeal has granted KCM leave to appeal to the Supreme Court, with the company advancing five proposed grounds of appeal.

Among these grounds, KCM is asking the Supreme Court to determine whether a preferential debt can be construed as a contract without meeting the liquidation threshold under the Corporate Insolvency Act.

KCM also seeks a determination on whether a company in liquidation can incur winding-up costs in the context of a Debt Settlement Scheme of Arrangement.

CEC, as respondent, had opposed KCM’s application for leave to appeal, arguing that the mining company was attempting to re-litigate a matter already resolved.

However, in a landmark ruling delivered by a full panel of the Court of Appeal—Justices Justine Chashi, Petronella Ngulube and Annie Banda-Bobo—the court directed that the dispute should now be settled by the Supreme Court.

Justice Banda-Bobo delivered the judgment, stating that the Court of Appeal had concluded on 28 January 2026 that KCM’s intended appeal satisfied the provisions of Section 13(3) of the Corporate Insolvency Act relating to debt settlement, and that the proposed grounds of appeal have “reasonable prospects of success,” given the appellate court’s findings on statutory preconditions.

Previously, on 9 October 2025, the Court of Appeal had declared CEC a preferential creditor in respect of the more than US$29 million owed by KCM.

That decision had varied the High Court’s judgement of 28 June 2024, which approved the Creditor Scheme of Arrangement but had not categorised CEC as a preferential creditor.

CEC was classified as a preferential creditor following its own appeal against the High Court ruling.

KCM Head of Corporate Affairs, Dr. John Kunda, welcomed the Court of Appeal’s latest decision, saying the Supreme Court will now have the opportunity to clarify a “critical and important point of law” with far-reaching consequences for the jurisdiction.

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