Bankruptcy is a legal status of a person or other entity that cannot repay debts to creditors. A court order such as the kind HASS petroleum is seeking would see RVR property assigned to a receivership, who would sell it in an attempt to settle outstanding debts.
Local petroleum dealer, HASS, has asked court to declare Rift Valley Railways (RVR) bankrupt, in what would be a last ditch attempt to recover outstanding debt owed to them by the railways consortium.
The petitioners have told Justice David Wangutusi, of the Commercial Division of the High Court, that RVR has repeatedly failed to pay up a debt in excess of USD1 million (about UGX3.7 billion).
In seeking for Judge Wangutusi to invoke order 38 of the civil procedure rules under Section 3 and 4 of insolvency act and regulation 9 of the same, HASS says RVR procured automotive gas on credit between April and July 2017 but have since failed to meet their end of the bargain.
Bankruptcy is a legal status of a person or other entity that cannot repay debts to creditors. A court order such as the kind HASS petroleum is seeking would see RVR property assigned to a receivership, who would sell it in an attempt to settle outstanding debts.
“The debt s the liquidated sum payable immediately and the debtor appears to be unable to pay it,