The Commerce Court of Nyarugenge has recently nominated a provisional administrator for the telecommunications company, Rwandatel, as it applies for bankruptcy.
The Spokesperson of Courts, Charles Kariwabo, has said that the court has received a case in order to decide whether Rwandatel is headed for bankruptcy or not.
“While waiting that the court makes a verdict on the bankruptcy; the court has taken provisional measures including, among others, the nomination of the provisional administrator which was done yesterday on the 21st this month.
But hearing sessions are going to continue; there will be a preliminary hearing session on the 30th May, this session will be followed by a hearing in detail thereafter when the court will rule whether Rwandatel is headed for bankruptcy or not.”
Kariwabo continued to say that it is the Registrar General who had taken the case to the court. According to Kariwabo, Rwanda has only one registrar working in Rwanda Development Board assigned to the registration of companies before operating in Rwanda.
“A company which finds itself in such a situation disappears completely; that literally means that it can no longer operate. So, faced with this situation; the next stage is to designate an administrator to manage it, here, the administrator is going to cope with different steps of management of the situation involving the collection of all Rwandatel’s remaining possessions and finally the payment of its creditors ”
The most privileged ……of a company in such a case is its personnel; which means Rwandatel’s former employees shall be paid their salaries, according to Kariwabo as that is the most important priority even before the company handles its debts. The Court may appoint a licensed insolvency practitioner as Administrator, this places a moratorium around the company and stops all legal actions.