The properties of Holland Car Plc., which is under liquidation following a court’s decision, are up for auction with a floor price of 83 million birr.
The liquidity supervision commission that was assigned by the court has invited interested bidders to buy assets of the pioneer automobile assembler that is based in Mojo, 75 kilometers South-east of Addis.
Shareholders of the car assembler, that declared bankruptcy about two years ago, had submitted a proposal to the liquidity supervision commission in March 2015 in a bid to save the company from being liquidated but their plea did not bear fruit. According to a notice that was released by the liquidity body, Holland Car’s property that is worth 83 million birr is up for tender.
Assembled automobiles and vehicle parts worth 51.7 million birr are the major items in the auction. Different factory, warehouse, and office buildings constructed on a plot of 20,000 square meters in Mojo estimated to be worth 22.3 million birr are also included in the auction. Other properties like machineries and equipments, raw materials and office furniture are also part of the auction.
The main financer of Holland Car Plc., Zemen Bank, had put up the company’s property for auction in different occasions, but a court ruling rejected the auction.
Money from the current sales will be used to settle creditors’ claims. The company owed about 97 million birr to creditors and car buyers.
Few weeks ago, the two shareholders of Holland Car Plc., Trento BV and Tadesse Tessema (Engineer) who was also General Manager of the company, have proposed that the company will settle all claims of creditors and clients within a year period if it is given a green light to start assembling again.
The commission that was established under court order to supervise and liquidate the assets of the bankrupt assembler had received a seven pages proposal on March 16 that detailed measures for a possible recovery. A week ago Tadesse, who is now residing in the Netherlands, told Capital via telephone that he is waiting for the government’s decision on his proposal. He said that he has submitted his case to the Prime Minister Office to solve the matter without any damage to any parties who have stakes in the case.
Tadesse told Capital that he sent complaints to the court saying that the auction process is not going in proper manner, however, the court rejected the claim.
According to the recovery plan, the car assembler will secure a capital injection from a foreign source which it claimed is adequate to commence its operation.
Holland Car was closed down in late 2012 after it declared bankruptcy due to lack of finance.
After the closure, creditors, including Zemen Bank, clients and other stakeholders including employees have pressed charges to reclaim their money from the company.
A court had instated a liquidity commission to verify the bankruptcy declarations of Holland Car. In the meantime, the major creditor Zemen Bank had filed a claim to foreclose the company to secure its money. Nevertheless, a Cassation Bench rejected Zemen Bank’s request as redeeming can affect the interest of other stakeholders.
The shareholders had acknowledged that the company has an outstanding debt of 97 million birr that includes 10 million birr tax, 31 million birr bank loan, and 22 million birr customers’ advance payments. The total asset value of Holland Carat the time of inspection by the Liquidity Commission is close to 160 million birr.
During the ten years it was active in business, Holland Car had made a name for its Abay, Tekeze, Naomi and Awash automobile brands.