This means that the government will be responsible for up to 500 billion Shillings of liabilities that UTL had at the time it sunk into administration two years ago. The new investor will only have to invest to overhaul the network because it is obsolete.
The meeting is closed to the media, but Provia Nangobi, the publicist of Uganda Registration Services Bureau, says a communiqu on the outcome of the meeting will be issued later. Sources say many creditors, including competitors, are attending the closed-door meeting. It is not yet clear if the Libyans are in attendance, having threatened to sue the government if they are not compensated for their capitalization of the telco.
The takeover has been prompted by communication from Libyan Investors that they will not provide funding to Uganda Telecom. The Majority shareholders also ordered the resignation of its five representatives to UTL board