NYARUGENGE - The Commercial Court in Nyarugenge, yesterday, appointed Richard Mugisha as Rwandatel’s Administrator, effective immediately, for a period of two months.
Reading the ruling, Judge Germain M Bwasisi, said that according to section 18 and 19 of the Commercial Law of 12/2009, the court has the powers to appoint an administrator in the event that the company is deemed to be heading for bankruptcy.
The ruling spelled out the specific roles and responsibilities of the administrator, which included total management of all of the company’s assets and accounts.
The court also gave him powers to supervise Rwandatel’s day-to-day business and oversee the expenditure and payments of its debts, taking of loans and giving of company assets as guarantees for loans, on behalf of the company.
The court added that the administrator would submit a report to court, after a period of two months, recommending whether the company should remain in business or have its assets sold and shut down.
The administrator will also provide periodical reports when asked to.
The Registrar General, Louise Kanyonga, who instituted insolvency proceedings, said that the court ruling will create confidence among the employees and the company’s creditors
The government, through the Registrar General, instituted insolvency proceedings seeking court orders to shut down the company after audit reports indicated that it was in a state of bankruptcy.
“We are quite happy that the court has appointed the administrator, we are optimistic that things will be straightened and mismanagement of the company will stop,” Kanyonga said.