(Updates with administrator comments in second paragraph.)
July 19 (Bloomberg) -- Rwandatel SA, Rwanda’s third-biggest mobile-phone operator that had its operating license revoked in April, should be liquidated, according to Richard Mugisha, its temporary administrator.
“My findings were that it was not possible to turn around the company because to do so would require a substantial injection of cash,” Mugisha told reporters today in the capital, Kigali.
A Rwandan court ordered Mugisha to take over the Libyan- owned company in May after regulators in the East African country said it was “technically insolvent.” Rwandatel will sell assets worth about $50 million as a package to another telecommunications company, Mugisha said, without saying which companies had shown interest in buying the assets. Rwandatel has about $88.9 million in debt, he said.
The company will continue to offer fixed-line phone and Internet services while sales are negotiated, Mugisha said. A creditors’ meeting will be held no later than Aug. 4 in line with a court ruling and creditors must submit their claims by Aug. 31, he said.
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