A Case To Ammend The Insolvency Act To Give Employees Terminal Priority

But what the liquidation of BCL has also exposed, is the  position of  Botswana workers in the ranking order of creditors. According to the Insolvency Act, when a company undergoes liquidation, there are creditors who are given preference as compared to others. We have since learnt that  the ranking order of creditors are divided into two categories, secured creditors and preferent creditors. Secured creditors are those that are given in simple parlance first priority in the payment of debts. These are holders of mortgage bonds hypothecating immovable property.

This means if banks have any mortgage bonds against BCL and TNCM, they will be paid first in any remaining estate  because they are secured creditors.