Addis Ababa – The Federal High Court Lideta Civil Bench suspended the foreclosure of Holland Car Plc. (HC) a day before the opening of the auction on Saturday 15th May 2015, according to Capital.
HC has been set for auction by court order.
Tadesse Tessema, General Manager of Holland Car and one of the shareholders of the company, appealed to the High Court for the suspension of the auction. He told Capital the Court accepted his claim and issued a warrant to suspend the foreclosure on Friday afternoon.
With the aim of reviving the company, Tadesse has submitted a recovery proposal to the liquidity supervision commission. The proposal which was obtained by Capital two months ago reads that the company has got six million Birr injection from a foreign source to revive the assembly situated in Mojo Town.
The proposal intends that if the semi-assembled cars are finished and the different spare parts that are in stock are assembled, sales of these cars only can cover for the whole debt.
HC has a debt of 97 million Birr, 10 million Birr tax, 31 million Birr bank loan and 22 million Birr customers’ advance payments.
HC was founded in 2005 via a joint venture between Tadesse Tessema and Trento Engineering, a Dutch company with an initial capital of 11 million Birr.
Source: Capital Ethiopia