Problematic of liquidation and dissolution of companies under rwandan law: case study of Rwandatel

II.4.2. Analysis of the case

Basing on the article 17 of the Law N. 12/2009 of 26/05/2009 relating to commercial recovery and settling of issues arising from insolvency which provides the grounds of insolvency proceedings, it states that it bases on the below reasons:

1° if the debtor is unable to pay the debts that are due;

2° if the debtor does not have the capacity to pay on the fixed date;

Rwandatel was not able to pay the due debts as it was showed by the temporary administrator, where he says that Rwandatel Ltd stopped to reimburse all debts. It was obvious that the debts which were being paid are the due debts.^122(*)

The 2010 financial statement shows that on 31/12/2010 the debts of Rwandatel Ltd were estimated at 54 302 750 000 RWF of current liabilities + 3 224 528 000 RWF of noncurrent liabilities. The report of temporary administrator showed that up to 31/12/2010 Rwandatel Ltd was having debts of 54 302 750 442 RWF, on the 7^th page of the report it showed in April 2011, the debts were 54 982 210 279. The report shows that in May 2011, the assets of Rwandatel Ltd were 29.99 billion RWF. It also shows that on 30/04/2011, the assets of Rwandatel Ltd were estimated to 50USD and the debts 88.9USD. This sum showed that the liabilities of Rwandatel Ltd are far greater than its assets.^123(*)

2010 Financial statement showed that in 20101 Rwandatel Ltd had the loss of 9 959 710 00RWF, and that in 2009 it was 7 012 761 00RWF. The report of the temporary administrator showed that that loss started in 2008, and it also showed in January, February, March, April and May 2011 Rwandatel Ltd didn't benefit which means that there is no hope of reimbursing its debts.

The above said explanations showed the grounds of proceedings of insolvency that are stated in the article 17of the Law N. 12/2009 of 26/05/2009 relating to commercial recovery and settling of issues arising from insolvency. The Court found that the complaint of the Registrar general was validand that it decides the proceedings of insolvency of Rwandatel should be started.^124(*)

Basing on the article 6 of the Law N. 12/2009 of 26/05/2009 relating to commercial recovery and settling of issues arising from insolvency, the court found that the temporary administrator fulfills all requirements in order to be appointed as administrator of insolvency proceedings of Rwandatel Ltd. He was to be appointed by the first general meeting of creditors as it is provided by that article.

The committee of creditors has been appointed by the first meeting of all creditors as it stated by article 14 of the above said law. That article also says that in the situation where that committee has been established by the court, it has to be admitted by that meeting. But the law does not show in which case the court establishes that committee. For Rwandatel Ltd case, it is the first meeting of creditors that established that committee. That is the way that MTN RWANDACELL was requesting the court to be added in that committee was impossible.^125(*)

* ¹²² Nyge C C, 18/07/2011, Rcom o175/011/TC/Nyge, Registrar General of companies Vs Rwandatel Ltd, p.3

* ¹²³Ibid.

* ¹²⁴ Nyge C C, 18/07/2011, Rcom 0175/011/TC/Nyge , Registrar General of companies Vs Rwandatel Ltd, p.4.

* ¹²⁵Ibid.