MERGERS, ACQUISITIONS AND FINANCIAL RESULTS

Rwandatel to Meet Creditors Following Court Ordered Liquidation

Rwandan telco, Rwandatel has confirmed that it will be meeting with its creditors after a local court ordered the company to liquidate its assets to repay debts.

The company is estimated to have debts of nearly US$89 million, but assets of just US$50 million. The company was ordered to shut-down its GSM network earlier this year following claims by the regulator that it had missed license obligations.

Rwandatel's Administrator, Richard Mugisha, told the Business Times that as provided by law, the company is mandated to meet with its creditors to agree on resolutions and approve a managerial team to oversee the company during the process.

"When the company's assets are successfully sold off, we shall discuss with the different institutions and individuals whom we owe, when and how the payment process will be implemented."

The telecom company is partially owned by Libyan investment group - LAP Green - with an 80% stake and the Social Security Fund of Rwanda (SSFR) which has 20 percent.

Source: Business Times

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