Home / Knowledge / News / Textiles / Let textile mill collapse, say parliamentarians
Let textile mill collapse, say parliamentarians
24
Mar '10
A private textile company, in which the Ugandan government has a good amount of shareholding is on the verge of collapse and could close down any time. This fear was echoed by the government in parliament.

However, parliamentarians say that, other shareholders who own 21 percent of Phenix Logistics Ltd, in which the government has the rest of the 79 percent stake, were unwilling to commit funds to run and manage the textile mill.

The government has put across a proposal to inject Shs1.3 billion into the company in the Parliament. Giving reasons, the government said that the firm was seriously impacted by the economic crisis and needs to be saved, lest it collapse.

Earlier, in 2000, the Uganda Development Bank lent the company Shs4.2 billion, which the firm was not able to repay and with interest the whole amount accumulated to Shs5 billion by 2008.

On a request from Phenix Logistics the government converted the Shs5 billion into shares in 2008. But once again, within a year of writing off the debts, the textile enterprise has once more run in to a deep financial crisis.

A few of the Parliamentarians are not in favour of allocating more public money to Phenix Logistics as they will feel that it will be a case of throwing good money after bad and are in favour of the firm collapsing.

Fibre2fashion News Desk - India


Must ReadView All

Azerbaijan's Gilan Textile Park raises exports by 40%

Apparel/Garments | On 18th Aug 2018

Azerbaijan's Gilan Textile Park raises exports by 40%

Azerbaijan's Gilan Textile Park has raised its exports by 40 per cent ...

CPD studies living cost of Bangladesh RMG workers

Apparel/Garments | On 18th Aug 2018

CPD studies living cost of Bangladesh RMG workers

The living cost of readymade garment (RMG) workers in Bangladesh...

Brazilian cotton price index returns to April 2018 level

Textiles | On 18th Aug 2018

Brazilian cotton price index returns to April 2018 level

Cotton prices dropped in Brazil in the first fortnight of August as...

Interviews View All

Kamlesh Vaghela
RK Textiles

Very few machinery manufacturers have R&D units

Shawn Honeycutt
Bolger & O'Hearn

‘The Indian market is interesting and rather persistent in seeking new...

Top executives
Fabric manufacturers

Domestic manufacturers would get an edge over imported products

Ravi Raj Desai

Himalaya Cotton Yarn Ltd manufactures high quality denier. The spinning...

Kamal Kulshreshth

Colorjet is among the fastest-growing wide format digital inkjet print...

Tejas N Patel, Navin D Patel

Founded in 1999 by Navin Patel in the name of Tejas Fabrics with 100...

Paige Mullis
Glen Raven Inc

Paige Mullis discusses the expansion plans of Glen Raven Inc in India, and ...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Robin Grankvist
OrganoClick AB

Robin Grankvist talks about PFCs, additives and various chemicals used in...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


August 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search