BCL creditors face long wait to get payment
Onalenna Kelebeile | Thursday January 19, 2017 18:00
He explained during a press conference here on Tuesday that the High Court will decide on February 7 if the companies should be placed under final liquidation.
He stated that afterwards, the Master of the High Court will convene a meeting so that creditors can prove their claims against the three subsidiaries of the BCL Group so that they can issue instructions to the liquidator and receive payment against their claims at the end of the liquidation process.
“That will be if there are sufficient funds realised in the sale of assets to cover the costs of the liquidation and pay a dividend to creditors,” he indicated.
Dixon-Warren however indicated that he does not know the number of creditors but will only know when they have formally submitted their claims for assessment.
He could not even disclose the amount the creditors are owed or that the companies are owed by their customers.
Dixon-Warren explained that during the meeting of the creditors they are granted an opportunity to nominate the final liquidator.
Creditors are also provided with a report detailing the assets and liabilities of the companies as well as providing the reasons why the companies failed among other matters. Dixon-Warren was hopeful that if the companies were placed under final liquidation on February 7 then the expected date of the creditors meeting will be held in April.
“The date is set by the Master of the High Court not the provisional liquidator. I have to prepare a report and submit claim forms to all known creditors. The number of creditors for these companies are considerable therefore I will need sufficient time after February 7 to do all this,” he said.
BCL owes various creditors who include the Botswana Power Corporation and Water Utilities Corporation, as well as banks, up to P1 billion. Dixon-Warren indicated that the second meeting of the creditors normally takes place between three to six months after the first meeting but it depends on a particular liquidation.
The second meeting allows creditors a further opportunity to prove their claims. “The final liquidator will report at the meeting on the affairs of the estate and will seek direction from the creditors as to the sale of the assets. He/she will also report on the legal issues,” he noted.
Dixon-Warren added that the companies are currently under care and maintenance to safeguard and maintain the assets. This includes keeping the mines free from water that accumulates underground as a result of normal operations. “There has been interest in the assets of the three companies from a number of parties both from local and oversees,” he added. He indicated that the interests have not yet led to any formal offer and added that ordinarily the assets cannot be sold prior to the second meeting of the creditors.
He further indicated that the majority of the employees were paid their terminal benefits before the end of December last year. He said government availed sufficient funds to settle all the terminal benefits and cover the care and maintenance exercise. “I cannot disclose the amount but the funds are enough to assist until the second meeting of creditors,” he noted.
He said with the liquidation there is nothing further that he can do to assist the employees after they have received their terminal benefits and provided them with letters of service and letters to third party creditors. “I am prepared however to assist should government decide to fund support services provided costs are covered so that the creditors are not prejudiced,” he said.