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Contractors threaten to liquidate M-tel over N400m debt

By on March 26, 2011

Agroup of contractors to the Nigeria Mobile Telecommunications (M-tel), mobile subsidiary of Nigerian Telecommunication Ltd (NITEL), has initiated the process of winding the telecoms firm, for failing to pay its debts.

The group, M-tel Contractors Group, had through its counsel, Mr Sulaiman Usman, served a demand on M-tel requiring her to pay its members over N400 million owed them.

In a statement by its Secretary-General, Sebagen Noboh, the group said it is exploring a legal means to seek redress, since the demand notice, which lapsed after three weeks, is the first step required for a creditor to liquidate a company unable to pay its debts.

The demand of payment of debt notice was served and recieved on March 17, 2011.

It reads: “According to the Companies and Allied Matters Act section 408(d), “A company may be wound up by the court if the company is unable to pay its debts.”

Section 409(a), says: “A company shall be deemed to be unable to pay its debts if a creditor, by assignment or otherwise, to whom the company is indebted in a sum exceeding 2,000 then due has served on the company, by leaving it at its registered office or head office, a demand under his hand requiring the company to pay the sum so due, and the company has for three weeks thereafter neglected to pay the sum or to secure or compound for it to the reasonable satisfaction of the creditor.”

Source : The Nation