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Rainbow Tourism Group is insolvent and should be placed under judicial management

6 years agoThu, 01 Jun 2017 09:35:44 GMT
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Rainbow Tourism Group is insolvent and should be placed under judicial management

British tycoon, Nicholas van Hoogstraten who holds 36 percent shareholding in the Rainbow Tourism Group (RTG) has called for the firm to be placed under judicial management. Van Hoogstraten wants RTG to be placed under judicial management because the company is insolvent. This comes after shareholders rejected RTG’s plan to seek a US$25 million injection, aimed at boosting the leisure firm’s operations. Van Hoogstraten was supported by the National Social Security Authority (NSSA) which owns 40 percent of RTG.

Said Van Hoogstraten:

I have no plan to support them

My view is that we should go for judicial management because the company is insolvent. All these injections are a way of getting money out of RTG. But the company has been destroyed. Borrowing money is not the solution. This is what this company has failed to realise,

The only debts that they have paid were the cheapest debts. They repaid them so that they will borrow more from the banks. They have made the mistake of telling me that this is what they are doing. So I will not approve any new proposal. They were stupid enough to tell me that they repaid the debts because they wanted to borrow more money,

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More: Financial Gazette

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