Government confirms corporate rescue for Telecel Zimbabwe
May 17th 2023
The government of Zimbabwe has confirmed that struggling state-owned mobile operator Telecel has been placed under corporate rescue to prevent liquidation. A report from News Day says that the bankruptcy protection measure will protect the cellco from potential lawsuits filed by creditors.
David Mhambare, the secretary general of the Communication and Allied Service Workers Union of Zimbabwe, applied for the protective measure in October. His high court application stated: ‘The … conditions indicate the existence of a material uncertainty that may cast significant doubt on the company’s ability to continue operating as a going concern. If the solvency position of Telecel does not receive prime attention, it will inevitably go under liquidation.’ The application noted that Telecel had assets of USD1.5 billion at the end of 2021, but had debts of USD24 billion at the same date.
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