By Burnett Munthali
A K7.07 billion order against Press Corporation plc (PCL) over debts linked to its former subsidiary, People’s Trading Centre (PTC), has been put on hold as the conglomerate challenges the High Court ruling before the Malawi Supreme Court of Appeal.
PCL has obtained an order stopping enforcement of the September 4, 2026 decision of the High Court Commercial Division, which directed the company to contribute K7.071 billion towards liabilities arising from PTC’s insolvency.
The company, through its lawyer Modecai Msisha, SC, has filed a notice of appeal, arguing that the High Court made errors of law and fact in finding that PCL contributed to PTC’s collapse and in ordering it to make the payment to the provisional liquidator.
Modecai Msisha
The case was brought by the Registrar General, acting as provisional liquidator of PTC, who sought a contribution from PCL towards outstanding liabilities involving nearly 300 creditors.
Justice Masauko Msungama ruled that PCL’s prolonged involvement in PTC’s affairs, despite being aware of the retailer’s deteriorating financial position, justified financial responsibility under Section 137(1) of the Insolvency Act.
The court found that PTC continued operating and accumulating liabilities while experiencing serious financial difficulties, with PCL retaining significant control over the company as its former sole shareholder.
The K7.071 billion figure comprises K5,999,999,081 in liabilities attributed to PTC at the time it was transferred to Tafika Holdings, together with K1,545,273,957 owed to former employees in terminal benefits.
The court deducted K473.8 million recovered through the liquidation and sale of PTC assets before arriving at the final amount.
PCL was also ordered to pay 70 percent of the party-and-party litigation costs.
However, the court rejected several additional claims by the liquidator, including interest, collection charges, compensation, liquidators’ fees and exemplary damages.
PCL is challenging the finding that it caused or materially contributed to PTC’s insolvency.
The company also argues that payment to the liquidator should not have been ordered without first determining the creditors legally entitled to receive the funds.
The dispute follows the 2022 sale of PTC to Tafika Holdings Limited, which acquired 100 percent of the retail chain from PCL.
Tafika subsequently sought to reorganise the financially troubled business, but the High Court later dismissed the reorganisation application and ordered PTC’s liquidation and closure.
PTC, established in 1973, was once one of Malawi’s largest retail chains, operating more than 135 outlets at its peak.
By the time of the 2022 ownership transfer, its network declined to about 20 stores following years of financial difficulties.
The Supreme Court of Appeal will now consider PCL’s grounds of appeal and determine whether the High Court was justified in ordering the K7.071 billion contribution.
For PTC’s creditors and former employees, the appeal will affect the recovery of outstanding claims, as the disputed payment will remain suspended while the legal challenge is considered, subject to further court directions.
Until the appellate process is concluded, the High Court’s findings remain subject to appeal.
