The Judicial Court of Cabo Delgado will once again attempt this month to sell dozens of assets belonging to the former Plexus company, once one of Mozambique’s leading cotton operators. The court expects to raise more than €7 million from the sales.
At the center of the process is the insolvency of Plexus, formerly owned by the British group Plexus Cotton Ltd, whose operations were suspended in 2022. The closure left thousands of cotton farmers in Cabo Delgado without a market for their produce and burdened the company with significant debts which, according to the recovery plan released in 2023, amount to €6.9 million.
As part of the insolvency proceedings, the Judicial Court of Cabo Delgado has published a notice regarding the sale of ten groups of buildings owned by the former company. These assets are valued at €3.3 million, and the opening of bids is scheduled for June 15.
According to the notice, the assets will be offered for sale “for a second time through sealed bids at half the value of the first auction,” referring to the unsuccessful sale attempt held in August 2025. The procedure forms part of the company’s asset recovery process.
In a separate notice published on the same date and with the same deadline for bid submission and opening, the court is also offering 59 additional assets of the former Plexus for sale, including vehicles and buildings, with a combined value of €3.8 million. These assets are likewise part of the judicial liquidation process.
At the time of its closure, the British group attributed the suspension of operations to losses caused by successive cyclones that struck the region, as well as the impact of armed violence in Cabo Delgado. These factors contributed to a deterioration in the company’s financial performance from 2016 onwards, ultimately leading to its shutdown in 2022.
It is estimated that around 200 employees were left with unpaid salaries, while approximately 50,000 cotton farmers in Cabo Delgado have faced difficulties marketing their cotton since that year. Until then, these farmers supplied their cotton to Plexus, which handled its commercialization.
In 2023, an agreement was announced with the Portuguese company Felpinter Comércio e Indústria, which would take over management of the local cotton business. The deal included the operation of two processing facilities with a combined annual capacity of 45,000 tonnes, aimed at ensuring continuity in the sector.
Also in 2023, the Judicial Court of Cabo Delgado revealed that 95% of Plexus’ known debts were owed to four banks: Moza Banco, Banco Comercial e de Investimentos (BCI), Access Bank, and Société Générale, which are listed as the principal creditors in the insolvency proceedings.
