Early this month, the commercial court of Nyarugenge made a ruling that Rwandatel must liquidate its asset in order to generate funds to pay back debts worth USD 88.9 million. This liquidation is the first in the country’s history. The Court said liquidation of Rwandatel is the best way to safeguard the interests of the creditors who are supposed to submit their claims against the company by August 18th.
 

Telecoms regulator, Rwanda Utilities Regulatory Authority (RURA) revoked Rwandatel’s GSM license on April 8, this year following two notices from the regulator asking the company to fulfill its investment plan, coverage, roll out plan and quality of service.

Rwandatel’s Administrator Richard Mugisha said that the liquidation strategy to be adopted   will see all the business assets sold to another player offering telecommunication services. “The move will ensure maximization of the value of assets and enable continuation of service delivery without interruption,”

It is estimated that Rwandatel assets are currently valued at USD 50 million with its asset verification and assessment process still underway. In an effort to create a framework to resolve the challenges with the company’s creditors, the court requested all creditors to convene a special meeting.

The Administrator said they intend to sell the entire business, and that the objective is to get the best price from the assets. Rwandatel and the over 200 creditors will meet next week to discuss issues concerning the company’s liquidation process and payment of its debts.

The meeting will see them agree on resolutions and approve a managerial team to oversee the company during the process. The general meeting will approve a creditors’ committee to represent their interests during discussions with Rwandatel.

Mugisha however stated that once the liquidation process is completed, discussions about how, and when the payment process will be implemented with the different institutions and individuals owed will be held.