The construction industry was thrown into shock on Monday 14th December 2020 when Roofings Limited and Roofings Rolling Mills Limited filed a public notice of an insolvency petition against Roko Construction Limited, a leading player in construction and engineering in Uganda.
The petition was filed in the High Court of Uganda commercial division under company cause 6 of 2020 on 11th December 2020 for winding up and liquidation of Roko Construction limited; the petitioners are represented by Simon Tendo Kabenge Advocates.
Information got by this CEO East Africa Magazine is that Roko Construction Limited owes the petitioner about US$ 2 million which has not been paid up to now. This information could not be verified by press time.
Insolvency is the state of being unable to pay the debts, by a person or company. This means that Roko Construction will first be adjudged as unable to clear its debts and the notice calls for other creditors to equally lodge their claims.
The petition is to be heard before a judge of the high court who will order that liquidation commences. “and that the petition is directed to be heard before court sitting at the commercial division on a date to be appointed by the trial judge” the public notice reads in part.
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According to Insolvency experts, Roko Construction has an option for entering into an individual voluntary arrangement with creditors where it may agree to make a payment schedule prior to seeking an interim protective order from the court.
The two associated companies claim that they supplied construction materials which include steel bars, iron sheets to Roko for a number of projects however declined to pay for the materials.
In September 2020, Specialized coating Uganda Limited dragged Roko to court over failure to pay UGX336 million arising from supplies.
