The interim administrator of Afrimax, has called another meeting of creditors of the company during which they will decide the fate of Vodafone Uganda Ltd.
The creditors will vote to determine whether to liquidate the company or allow the interim administrator implement a restructuring plan with a view of resuscitating the company operations.
Afrimax is the holding company for Vodafone Uganda Ltd, the telecom operator that went bankrupt early this year.
Frank Nyakairu was appointed provisional administrator is summoning creditors in that capacity to a meeting on May 7th at the company offices at Kololo.
A letter from Nyakairu’s law firm to Vodafone creditors reads:
‘The purpose of the meeting is to provide a update on the status of the provisional administration and to vote on whether the company should go into liquidation and appoint a liquidator or execute an administration deed with its creditors.’
Followin weeks of speculation on impending doom, Afrimax announced in the media how it was entering bankruptcy protection.
“Take notice that on the 15th of February 2018, the High court of Uganda (Civil Division) issued an order confirming the application of Mr. Donald Nyakairu as the provisional administrator of Afrimax Uganda Limited, and an interim protective order was granted to the company for a period of three (3) months pursuant to Section 139 of the Insolvency Act, 2011”.
The administrator was to look at the business operations and determine whether Vodafone has the capacity to recover or whether it should be liquidated and wound up.
At this latest meeting on May 7th the company creditors will listen to the plans that Nyakairu has for the company. He will brief them on whether there are investors interested in the company and if there is a viable future for the business.
The creditors of the company will then have the final say by voting. They will each be presented with a ballot paper with two options. To liquidate the company or to execute an Administration Deed. The majority will determine the future of the company.
The provisional administrator’s order was for only three months starting February 15 and will be expiring next week.
The Agenda for the meeting, according to sources, has six items.
- Communication from the Provisional Administrator
- Update on Provisional Administration
- Questions and Answers
- Announcement of voting results
- Closing remarks