Saturday, June 27, 2026

Stakeholders in limbo as Holland Car’s liquidation suspended

The Cassation Bench of Federal Supreme Court has suspended the under liquidation of Holland Car Plc from settling any payments other than taxes.
Currently, the trustee hired by Federal High Court to manage the under liquidation firm has control of the company’s activity and the court in the process of disbursing the settlement amount to stakeholders in the dissolving Holland Car.
Meanwhile Tadesse Tessema, manager of Cassiopeia Car PLC, who is also founder and shareholder of Holland Car, filed a claim to the Cassation Bench. He wanted the case to be suspended and other legal cases finalized.
In its verdict, the Cassation Bench ordered the case to be suspended until it reviews the case further.
Tadesse, who was the first car assembly owner in Ethiopia when he opened Holland Car in 2005, filed an appeal to the Federal Higher Court against the final verdict of the 5th Civil Bench of the Federal Higher Court at Lideta. That court ruled that the assets of Holland Car be sold.
About a year ago, in an auction the trustee sold Holland Car’s assets for 42 million birr to Tamrin International Trading Plc but the previous court ruled the company’s assets be sold for at least 50 million birr.
Tadesse filed his claim to the 5th Bench in December last year, while on March 15 the Bench issued a verdict that in the good turn of the trustee that it said they followed the legal procedure and informed the court before they sold the asset.
Tadesse filed his case to the Appellate Bench of Federal High Court against the 5th Bench. He claimed that the trustee sold the assets for 8 million birr lower than the minimum price the court allowed before. When the initial appeal was filed to the 5th Bench the trustee argued it consulted the case to the judge via phone before deciding to sell the property for 42 million birr.
Tadesse argued that the court or judge would not have a legal right give a decision or consultation via phone, while in its final verdict given on March 15 against Tadesse the court did not mention the phone conversation.
Then Tadesse filed his appeal to the Appellate Bench. After that happened, the Cassation Bench suspended dividing the sum except for the tax settlement. There are several stakeholders at the car assembly including buyers who did not get their car before the company went bankrupt.

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