Zemen foreclose Holland car assets

Zemen Bank put up part of Holland Car Plc. assets for auction at a floor price of 9.6 million birr. The bank floated the tender for interested buyers for the assets of the car assembling plant located around Burayu area in the outskirts of Addis Ababa.
The pioneer car assembly plant in the country filed a few weeks ago bankruptcy. Following the announcement of the bankruptcy, Zemen Bank declared that the bank will transfer the company to another owner to try and settle the loan the company took. The Management of Zemen Bank in a statement sent to Capital in November proclaimed that “the fact that Holland Car has been going through financial difficulties and is unable to meet contractual obligations it has with its customers, Zemen Bank, as well as with its other creditors will not affect the bank in any way.”
The statement further reads “… in line with normal banking practices, and at the appropriate time, Zemen Bank will announce specific administrative and legal actions to be taken regarding the car assembly factory and other facilities that the Bank is holding as collateral for loans offered to Holland Car.” 
Tadesse Tessema (Eng), General Manager and founder of the car assembly has been objecting the plan of the bank. Tadesse told Capital that he had several discussions with the management of the bank to find solution on how to save the company. “But the management has declined all my proposal options,” he said.
According to the notice the bank placed on a local newspaper, the initial price of the asset which is established on a 3,000 meter square land that can be used for building or industry is birr 9,566,555. The bid will be opened on January 22, 2013.
Tadesse Tessema on his part had explained that his company was unable to continue assembling vehicles for lack of finance.
The car assembly that was in business for the past seven years, popular with its Abay and Awash automobile brands, has also failed its 120 clients from a total of 600 who have been waiting on deliveries for years.