The judicial manager appointed last month by the Bulawayo high court to run Kestrel Corp - owned by controversial business tycoon James Makamba - will stay put until the courts rule otherwise.
On Friday Makamba unsuccessfully challenged the ruling, made on March 19, that his company be put under judicial management "for an indefinite period".
The court had earlier ruled in favour of an application brought by George Manyere, Makamba's former business associate, that the company be placed under judicial management over the failure to pay off a $2.75m debt.
Winsley Militala, an insolvency practitioner at Petwin Executor & Trust Co in Harare, said on Friday he would remain on the job "until the court cancelled the exiting order it issued or any order is made that it thinks is appropriate".
The judge ruled that any challenges to show why the company, which has an indirect interest in Telecel Zimbabwe, should not be under judicial management, must be made by May 23.
Telecel is the country's second-largest mobile phone network operator.
In his opposing court papers, Makamba says there was no need for the company to be placed under judicial management as it was able to pay its debts.
Kestrel Corp is cited as the first respondent, with Manyere and Empowerment Corp cited as the second and third respondents.
Makamba also disputes the amount which Manyere claims is owed.
He says it was prejudicial for his company to be placed under the control of the courts when their dispute over the debt was before the courts. Manyere claims he paid Kestrel $2.75m as the deposit for the purchase of 690,000 shares in Empowerment Corp, the 40% shareholder in Telecel.
"In fact there is pending litigation between the parties in the Harare high court over the sum claimed. It is thus improper for applicants in that matter to seek an order of judicial management based on the same claim," says Makamba in his court papers...