Zimbabwean state-owned mobile provider Telecel has been placed under bankruptcy protection measures to avoid its liquidation.
The news was reported by local outlet News Day, which noted that the move by the country’s government would provide protection to Telecel in the event that its creditors take legal action.
We reported in October that the Communication and Allied Service Workers Union of Zimbabwe had applied for corporate rescue. The application from the union’s secretary general David Mhambare read: “conditions indicate the existence of a material uncertainty that may cast significant doubt on the company’s ability to continue operating as a going concern. If the solvency position of Telecel does not receive prime attention, it will inevitably go under liquidation.”
The application listed Telecel’s assets as being worth US$1.5 billion as of end-2021, but noted that its debt at the time totalled US$24 billion. Mhambare argued that corporate rescue would allow Telecel to rebuild its business if it received a stay of execution against legal action.