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Holland Car Plc Request For Second Chance

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Shareholders of the pioneer automobiles assembler in Ethiopia, Holland Car Plc. (HC), have submitted a proposal to an appointed liquidity supervision commission requesting a second chance for the assembler to resume its operation.

The commission that was established under court order to supervise and liquidate the assets of the bankrupt assembler, has received a seven pages proposal on Monday March 16 that detailed measures for a possible recovery.

The two shareholders of Holland Car Plc., Trento BV and Tadesse Tessema (Eng.) 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 commence assembling.

“We are presenting a proposal in which the loss of all creditors can be recovered within a period of 12 months after approval,” the owners pleaded for an opportunity to get back to work again. 

According to the recovery plan, the car assembler will secure a capital injection from a foreign source which it says is adequate to commence the 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 ofHolland Car. In the meantime, Zemen Bank had filed a claim to foreclose the company to secure its money. Nevertheless, a Cassation Bench rejected Zemen Bank’s request few weeks ago as redeeming can affect the interest of other stakeholders.