PCL blocks K7bn PTC payment order, appeals

Press Corporation plc has obtained a court order stopping implementation of a High Court of Malawi Commercial Division K7 billion order towards debts incurred by its disposed subsidiary, People’s Trading Centre (PTC).

The action followed a September 4 2026 order for the listed conglomerate to pay 70 percent of the litigation costs after the Registrar General, as provisional liquidator, sought Press Corporation’s contribution towards PTC’s outstanding liabilities to nearly 300 creditors.

Msisha: The court

erred. | Nation

In the notice of appeal to the Malawi Supreme Court of Appeal, Press Corporation through its lawyer Modecai Msisha, among others, argues that the court erred in law and fact that the corporation caused the insolvency of PTC.

The company also argues that the court erred in ordering the payment of the amount to the PTC liquidator without ascertaining actual creditors of PTC entitled to share the amount.

The High Court Commercial Division ordered PTC’s liquidation and complete closure without an option of takeover by another investor because of the company’s debt situation.

The order followed dismissal of an application for reorganisation filed by Tafika Holdings Limited, which had acquired a 100 percent stake in PTC from Press Corporation in March 2022.

Tafika is a South Africa-based trading and investment company owned by a Malawian entrepreneur.

The court ordered the corporation to remit K7 071 493 241 after taking into account amounts recovered through the liquidation and liabilities attributable to PTC.

Judge Masauko Msungama concluded that it was just and equitable for Press Corporation to pay the sums because the criteria under the relevant law had been satisfied, warranting an order under Section 137(1) of the Insolvency Act.

The court said evidence showed that, as of the transfer date, liabilities to be assumed by Tafika, following Press Corporation’s settlement of more than K12 billion to other creditors, amounted to K5 999 999 081.

PTC’s financial difficulties existed for years, with the retail chain shrinking from more than 135 outlets nationwide to about 20 stores by 2022.

Registered in 1973, PTC was Malawi’s first retail chain store, but poor performance and insufficient capital increasingly undermined its operations.

Press Corporation plc is a conglomerate listed on the Malawi Stock Exchange with investments in financial services, manufacturing and agriculture, among others.

The post PCL blocks K7bn PTC payment order, appeals appeared first on Nation Online.