Customers of DKM Microfinance anticipating payment of claims after the liquidation process may have to wait a little longer as the liquidation processes continue to face some constraints; at least this is the information available to Citi Business News.
The Official Liquidator for the company has revealed that the paucity of records has made it difficult to determine the true state of affairs of the company.
A statement from the Registrar General’s Department and copied to Citi Business News indicated, that the balance sheet of the company as at May 11, 2015 showed that the net liability of DKM stood at negative GHC21,030,142.00.
A situation, the liquidator maintains has rendered the company “insolvent and thereby unable to fully settle its obligations to its creditors, whose status are mainly preferential and unsecured.”
To secure the books and records of the company and commence the liquidation process, teams of officers were despatched to all the branches of DKM in the regions of operation to take custody over the resources of the company, in order to determine the current state of affairs of DKM and to critically determine the depositor base of the company.
But the statement explained that, “Currently, whereas most of the books and records of the company cannot be found and therefore retrieved, owing to the manner the offices of the company were shut down, (forced entry and seizure by some creditors), we noted that most of the assets of the company are the subject of legal attachments and are therefore in the custody of either the court or some creditors of DKM.”
It has however assured that it is making every effort to trace the records and to recover properties owned by the company.
The measures include;
(i)Locating the electronic versions of the books and records of the company and applying electronic means to retrieve data, including the application of Forensic Technology Solutions (“FTS”) tools to image and reconstruct data.
(ii) Engaging with the creditors and lawyers of these creditors, as well as the courts to wrestle company assets and realise them for the benefit of the body of creditors.
63,000 depositors affected
Meanwhile it has emerged that the official liquidator has been able to collate approximately 63,000 depositor claims which will be thoroughly examined and validated, following a reconstruction of the records of the company.
The huge numbers have also delayed the First Creditors meeting usually held within six weeks of commencement of liquidation or any other time the OL may deem necessary for the event to be held.
Official Liquidator to expedite processes to track records
Meanwhile the official liquidator says it will in the next four weeks undertake what it describes as “critical next steps”.
These include engaging the relevant agencies and individuals to access depositor data stored on the DKM’s servers; complete the compilation of data on depositors from documentation retrieved from the DKM’s branches as well as complete the collation and analysis of depositor claims.
In addition, the liquidator intends to resolve issues related to encumbrances on the DKM’s assets and recover assets, commence the validation of depositor claims and hold First Creditors meeting.