Creditors of Uganda Telecom Limited (utl) will meet on May 10 to deliberate on the way forward for the heavily indebted company, with a warning that failure to vouch for its continuation might negatively affect the creditors.
According to a May 8 release by Uganda Registration Services Bureau boss Bemanya Twebaze titled: ‘Provisional Administration of Ugamda Telecom Limited’, the meeting will decide whether UTL should continue operating or wind up (liquidation), the latter with possible negative consequences.
So, before the meeting Mr Twebaze, who is the official ‘Receiver/ Provisional Administrator of UTL, has advised the creditors to maintain the company, outlining the benefits.
‘Winding up/liquidation is is a formal process by which the life of a company is brought to an end. This would involve cessation of operations, termination of employment for all staff and suspending contracts with all suppliers and service providers and all assets disposed of one by one…closing down the business would significantly affect the value of assets and their disposal can be a very slow and hectic exercise’, Mr Twebaze release states in part, adding: ‘It is because (of) this diminished value that the potential to pay out to creditors may be significantly reduced’.
Previously owned by the Uganda and Libyan governments as majority shareholders, a select committee instituted by Parliament to probe is woes said that UTL is reportedly indebted to the tune of over Shs700 billion.
